Labor Law 1

7.05 CASUAL EMPLOYEES

NATURE OF WORK
A.M. ORETA & CO INC V NLRC (GRULLA) [PAGE 88]

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ISSUE 13; *he 7A employees were re-)lar employees a* *he *ime o8 *he cer*i8ica*ion elec*ion HELD &$: - A260LC pro,i+es 8or *wo kin+s o8 re-)lar employees> !1' *hose who are en-a-e+ *o per8orm ac*i,i*ies which are )s)ally necessary or +esirable in *he )s)al b)siness or *ra+e o8 *he employer@ an+ !2' *hose who ha,e ren+ere+ a* leas* one year o8 ser,ice, whe*her con*in)o)s or broken, wi*h respec* *o *he ac*i,i*y in which *hey are employe+ - /he in+i,i+)al pe*i*ioners herein who ha,e been a+<)+-e+ *o be re-)lar employees !by law' 8all )n+er *he secon+ ca*e-ory /hese are *he mechanics, elec*ricians, machinis*s, machine shop helpers, wareho)se helpers, pain*ers, carpen*ers, pipe8i**ers an+ masons I* is no* +isp)*e+ *ha* *hese workers ha,e been in *he employ o8 KI"#$%L& 8or more *han one year a* *he *ime o8 *he 8ilin- o8 *he pe*i*ion 8or cer*i8ica*ion elec*ion by KIL.:A;-3LALIA - 1hile *he ac*)al re-)lari4a*ion o8 *hese employees en*ails *he mechanical ac* o8 iss)in- re-)lar appoin*men* papers an+ compliance wi*h s)ch o*her opera*in- proce+)res as may be a+op*e+ by *he employer, i* is more in keepin- wi*h *he in*en* an+ spiri* o8 *he law *o r)le *ha* *he s*a*)s o8 re-)lar employmen* a**aches *o *he cas)al worker on *he +ay imme+ia*ely a8*er *he en+ o8 his 8irs* year o8 ser,ice - /he law is e(plici* As lon- as *he employee has ren+ere+ a* leas* one year o8 ser,ice, he becomes a re-)lar employee wi*h respec* *o *he ac*i,i*y in which he is employe+ /he law +oes no* pro,i+e *he =)ali8ica*ion *ha* *he employee m)s* 8irs* be iss)e+ a re-)lar appoin*men* or m)s* 8irs* be 8ormally +eclare+ as s)ch be8ore he can ac=)ire a re-)lar s*a*)s 3b,io)sly, where *he law +oes no* +is*in-)ish, no +is*inc*ion sho)l+ be +rawn - 3n *he basis o8 *he 8ore-oin- circ)ms*ances, an+ as a conse=)ence o8 *heir s*a*)s as re-)lar employees, *hose workers no* per8orce <ani*orial an+ yar+ main*enance ser,ice were per8ormance en*i*le+ *o *he paymen* o8 salary +i88eren*ial, cos* o8 li,in- allowance, 13*h mon*h pay, an+ s)ch o*her bene8i*s e(*en+e+ *o re-)lar employees )n+er *he C#A, 8rom *he +ay imme+ia*ely 8ollowin- *heir 8irs* year o8 ser,ice in *he company -/hese re-)lar employees are likewise en*i*le+ *o ,o*e in *he cer*i8ica*ion elec*ion hel+ in 5)ly 1, 1967 Conse=)en*ly, *he ,o*es cas* by *hose employees no* per8ormin- <ani*orial an+ yar+ main*enance ser,ice, which 8orms par* o8 *he 7A challen-e+ ,o*es, sho)l+ be opene+, co)n*e+ an+ consi+ere+ 8or *he p)rpose o8 +e*erminin- *he cer*i8ie+ bar-aininrepresen*a*i,e

ONE YEAR SERVICE

KIMBERLY INDEPENDENT LABOR UNION V DRILON 185 SCRA 190 REGALADO; May 9, 1990
FACTS - Kimberly-Clark Philippines, Inc !KI"#$%L&' e(ec)*e+ a *hreeyear collec*i,e bar-ainin- a-reemen* !C#A' wi*h .ni*e+ Kimberly-Clark $mployees .nion-Philippine /ranspor* an+ 0eneral 1orkers2 3r-ani4a*ion !.KC$.P/013' which e(pire+ on 5)ne 30, 1967 - 1i*hin *he 70-+ay 8ree+om perio+ prior *o *he e(pira*ion o8 an+ +)rin- *he ne-o*ia*ions 8or *he renewal o8 *he a8oremen*ione+ C#A, some members o8 *he bar-ainin- )ni* 8orme+ ano*her )nion calle+ 9Kimberly In+epen+en* Labor .nion 8or :oli+ari*y, Ac*i,ism an+ ;a*ionalism-3r-ani4e+ Labor Associa*ion in Line In+)s*ries an+ A-ric)l*)re !KIL.:A;-3LALIA' - April 21, 1967, KIL.:A;-3LALIA 8ile+ a pe*i*ion 8or cer*i8ica*ion elec*ion KI"#$%L& an+ .KC$.-P/013 +i+ no* ob<ec* *o *he hol+in- o8 a cer*i8ica*ion elec*ion b)* ob<ec*e+ *o *he incl)sion o8 *he so-calle+ con*rac*)al workers whose employmen* wi*h KI"#$%L& was co)rse+ *hro)-h an in+epen+en* con*rac*or, %ank "anpower Company !%A;K, 8or shor*', as amon- *he =)ali8ie+ ,o*ers - 3n 5)ne 2, 1967, "e+-Arbi*er #oni8acio I "arasi-an, who was han+lin- *he cer*i8ica*ion elec*ion case iss)e+ an or+er +eclarin- *he 8ollowin- as eli-ible *o ,o*e in *he cer*i8ica*ion elec*ion, *h)s> 1' re-)lar rank-an+-8ile laborers?employees o8 *he respon+en* company@ 2' cas)als who ha,e worke+ a* leas* si( !7' mon*hs@ 3' Con*rac*)al employees who are alle-e+ly in *he employ o8 an in+epen+en* con*rac*or an+ who ha,e also worke+ 8or a* leas* si( !7' mon*hs - D)rin- *he pre-elec*ion con8erence, 7A cas)al workers were challen-e+ by KI"#$%L& an+ .KC$.-P/013 on *he -ro)n+ *ha* *hey are no* employees o8 KI"#$%L& b)* o8 %A;K I* was a-ree+ by all *he par*ies *ha* *he 7A ,o*ers shall be allowe+ *o cas* *heir ,o*es b)* *ha* *heir ballo*s shall be se-re-a*e+ an+ s)b<ec* *o challen-e procee+in-s - A8*er *he elec*ions, .KC$.-P/013 won o,er KIL.:A;-3LALIA by 20 ,o*es /his co)n* consi+ere+ *he ,o*es o8 *he 7A employees as separa*e - In a case re-ar+in- *he s*a*)s o8 *he 7A employees in rela*ion *o *he cer*i8ica*ion elec*ion, i* was hel+ by me+-arbi*er :anche4 *ha*> BC2'/he o*her cas)al employees no* per8ormin- <ani*orial an+ yar+ main*enance ser,ices were +eeme+ labor-only con*rac*)als an+ since labor-only con*rac*in- is prohibi*e+, s)ch employees were hel+ *o ha,e a**aine+ *he s*a*)s o8 re-)lar employees, *he re-)lari4a*ion bein- e88ec*i,e as o8 *he +a*e o8 *he +ecision@ 3 .KC$.-P/013, ha,in- -arnere+ more ,o*es *han KIL.:A;-3LALIA, was cer*i8ie+ as *he e(cl)si,e bar-aininrepresen*a*i,e o8 Kl"#$%L&2s employees@CD - :ince *he members were only consi+ere+ re-)lar a* *he *ime o8 *he +ecision, *heir ,o*es were no* re-consi+ere+ as re-ar+s *he elec*ion - winnin- )nion an+ company e(ec)*e+ a C#A - KI"#$%L&-3LALIA 8ile+ 8or a /%3 on *he C#A an+ incl)+e+ *he =)es*ion o8 *he s*a*)s o8 *he 7A members in =)es*ion

SAN MIGUEL CORP V ABELLA [PAGE 59] INTEGRATED CONTRACTOR V NLRC (SOLON) 464 SCRA 265 QUISUMBING; A ! "# 9, 2005
NATURE Appeal 8rom a +ecision o8 *he CA a88irmin- *he ;L%CEs 8in+in-s which +eclare+ respon+en* :olon a re-)lar employee o8 *he pe*i*ioner an+ awar+e+ him wi*h 13*h mon*h pay, ser,ice incen*i,e lea,e pay, reins*a*emen* *o his 8ormer posi*ion wi*h 8)ll backwa-es 8rom *he *ime his salary was wi*hhel+ )n*il his reins*a*emen* FACTS - Pe*i*ioner is a pl)mbin- con*rac*or I*s b)siness +epen+s on *he n)mber an+ 8re=)ency o8 *he pro<ec*s i* is able *o con*rac* wi*h i*s clien*s - %espon+en* :olon worke+ 8or pe*i*ioner se,eral mon*hs a* a *ime 8rom 199A *o 1996

Labor Law 1
- 3n Feb 1996, while :olon was abo)* *o lo- o)* 8rom work, he was in8orme+ *ha* i* was his las* +ay o8 work as he ha+ been *ermina*e+ Ge wen* back *o pe*i*ionerEs o88ice *o si-n a clearance so he co)l+ claim his 13*h mon*h pay an+ *a( re8)n+s Gowe,er, he re8)se+ *o si-n when he rea+ *he clearance in+ica*in- *ha* he ha+ resi-ne+ Ge *hen 8ile+ a complain* 8or ille-al +ismissal wi*ho)* +)e ca)se an+ +)e process - /he Labor Arbi*er r)le+ *ha* :olon was a re-)lar employee an+ co)l+ only be remo,e+ 8or ca)se ;L%C a88irme+ wi*h only a mo+i8ica*ion as *o *he comp)*a*ion o8 13*h mon*h pay CA also a88irme+ ISSUE 13; respon+en* is a re-)lar employee HELD &$: Ratio /he *es* *o +e*ermine whe*her employmen* is re-)lar or no* is *he reasonable connec*ion be*ween *he par*ic)lar ac*i,i*y per8orme+ by *he employee in rela*ion *o *he )s)al b)siness or *ra+e o8 *he employer Also, i8 *he employee has been per8ormin- *he <ob 8or a* leas* one year, e,en i8 *he per8ormance is no* con*in)o)s or merely in*ermi**en*, *he law +eems *he repea*e+ an+ con*in)in- nee+ 8or i*s per8ormance as s)88icien* e,i+ence o8 *he necessi*y, i8 no* in+ispensabili*y o8 *ha* ac*i,i*y *o *he b)siness !De Leon , ;L%C' Reasoning - 1hile len-*h o8 *ime may no* be *he con*rollin- *es* 8or pro<ec* employmen*, i* is ,i*al in +e*erminin- i8 *he employee was hire+ 8or a speci8ic )n+er*akin- or *aske+ *o per8orm 8)nc*ions ,i*al, necessary an+ in+ispensable *o *he )s)al b)siness or *ra+e o8 *he employer Gere, pri,a*e respon+en* ha+ been a pro<ec* employee se,eral *imes o,er Gis employmen* cease+ *o be co*ermino)s wi*h speci8ic pro<ec*s when he was repea*e+ly rehire+ +)e *o *he +eman+s o8 pe*i*ionerEs b)siness Disposition assaile+ Decision +a*e+ 3c*ober 30, 2001 an+ *he %esol)*ion +a*e+ Febr)ary 26, 2002 o8 CA are AFFI%"$D wi*h "3DIFICA/I3; /he pe*i*ioner i+ hereby 3%D$%$D *o !1' reins*a*e *he respon+en* wi*h no loss o8 seniori*y ri-h*s an+ o*her pri,ile-es@ an+ !2' pay respon+en* his backwa-es, 13*h mon*h pay 8or *he year 1996 an+ :er,ice Incen*i,e Lea,e Pay comp)*e+ 8rom *he +a*e o8 his ille-al +ismissal )p *o *he +a*e o8 his ac*)al reins*a*emen*

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services were necessary and desirable in the usual business of his employer, and his employment had lasted for five years , he ha+ ac=)ire+ *he s*a*)s o8 re-)lar employee an+ co)l+ no* be remo,e+ e(cep* 8or ,ali+ ca)se - /he employmen* con*rac* o8 19I1 was e(ec)*e+ when *he Labor Co+e o8 *he Philippines ha+ no* ye* been prom)l-a*e+, which came in*o e88ec* some 3 years a8*er *he per8ec*ion o8 *he con*rac* ISSUE 13; *he pro,isions o8 *he Labor Co+e !re-ar+inproba*ionary?re-)lar employees' ha,e ana*hema*i4e+ B8i(e+ perio+ employmen*D or employmen* 8or a *erm HELD ;3 Reasoning - #e8ore *he Labor Co+e, *here was no +o)b* abo)* *he ,ali+i*y o8 *erm employmen* I* was implie+ly b)* clearly reco-ni4e+ by *he /ermina*ion Pay law, %A 10H21 - /he Ci,il Co+e, which has always reco-ni4e+, an+ con*in)es *o reco-ni4e, *he ,ali+i*y an+ proprie*y o8 con*rac*s an+ obli-a*ions wi*h a 8i(e+ or +e8ini*e perio+, an+ imposes no res*rain*s on *he 8ree+om o8 *he par*ies *o 8i( *he +)ra*ion o8 a con*rac*, wha*e,er i*s ob<ec*, be i* specie, -oo+s or ser,ices, e(cep* *he -eneral a+moni*ion a-ains* s*ip)la*ions con*rary *o law, morals, -oo+ c)s*oms, p)blic or+er or p)blic policy .n+er *he Ci,il Co+e, *here8ore, an+ as a -eneral proposi*ion, 8i(e+*erm employmen* con*rac*s are no* limi*e+, as *hey are )n+er *he presen* Labor Co+e, *o *hose by na*)re seasonal or 8or speci8ic pro<ec*s wi*h pre-+e*ermine+ +a*es o8 comple*ion@ *hey also incl)+e *hose *o which *he par*ies by 8ree choice ha,e assi-ne+ a speci8ic +a*e o8 *ermina*ion -!*hereEs a lon-, lon- his*ory abo)* *he chan-es o8 pro,isions in *he labor co+e, showin- how 8i(e+ perio+ employmen* became less an+ less accep*able ' - 1here 8rom *he circ)ms*ances i* is apparen* *ha* perio+s ha,e been impose+ *o precl)+e ac=)isi*ion o8 *en)rial sec)ri*y by *he employee, *hey sho)l+ be s*r)ck +own or +isre-ar+e+ as con*rary *o p)blic policy, morals, e*c - #)* where no s)ch in*en* *o circ)m,en* *he law is shown, where *he reason 8or *he law +oes no* e(is*, e - , where i* is in+ee+ *he employee himsel8 who insis*s )pon a perio+ or where *he na*)re o8 *he en-a-emen* is s)ch *ha*, wi*ho)* beinseasonal or 8or a speci8ic pro<ec*, a +e8ini*e +a*e o8 *ermina*ion is a sine qua non, wo)l+ an a-reemen* 8i(in- a perio+ be essen*ially e,il or illici*, *here8ore ana*hemaJ 1o)l+ s)ch an a-reemen* come wi*hin *he scope o8 Ar*icle 2602 which

7.06 CONTRACT FIXED PERIOD

TESTS VALIDITY
BRENT SCHOOL V ZAMORA 181 SCRA $02 NAR%ASA; &'() a)y 5, 1990
NATURE Appeal 8rom <)+-men* FACTS - Ale-re was a*hle*ic +irec*or a* #ren*, a* a yearly compensa*ion o8 P20,000 Ger con*rac* 8i(e+ a speci8ic *erm o8 H years 8or i*s e(is*ence, 8rom 5)ly, 19I1, *o 5)ly, 19I7 :)bse=)en* s)bsi+iary a-reemen*s in "arch 19I3, A)-)s* 19I3, an+ :ep* 19IA rei*era*e+ *he same *erms an+ con+i*ions, incl)+in- *he e(piry +a*e, as *hose con*aine+ in *he ori-inal con*rac* o8 5)ly, 19I1 - 3 mon*hs be8ore *he e(pira*ion o8 *he s*ip)la*e+ perio+, in April 19I7, Ale-re was -i,en a copy o8 *he repor* 8ile+ by #ren* wi*h *he Dep 38 Labor a+,isin- o8 *he *ermina*ion o8 his ser,ices, e88ec*i,e 5)ly 17, 19I7 /he s*a*e+ -ro)n+ 8or *ermina*ion was Bcomple*ion o8 con*rac*, e(pira*ion o8 *he +e8ini*e perio+ o8 employmen* D - Ale-re pro*es*e+ *he anno)nce+ *ermina*ion o8 his employmen* Ge ar-)e+ *ha* al*ho)-h his con*rac* +i+ s*ip)la*e *ha* *he same wo)l+ *ermina*e on 5)ly 1I, 19I7, since his

In cases o8 employmen*, wi*ho)* a +e8ini*e perio+, in a commercial, in+)s*rial, or a-ric)l*)ral es*ablishmen* or en*erprise, *he employer or *he employee may *ermina*e a* any *ime *he employmen* wi*h <)s* ca)se@ or wi*ho)* <)s* ca)se in *he case o8 an employee by ser,in- wri**en no*ice on *he employer a* leas* one mon*h in a+,ance, or in *he case o8 an employer, by ser,in- s)ch no*ice *o *he employee a* leas* one mon*h in a+,ance or one-hal8 mon*h 8or e,ery year o8 ser,ice o8 *he employee, whiche,er is lon-er, a 8rac*ion o8 a* leas* si( mon*hs bein- consi+ere+ as one whole year /he employer, )pon whom no s)ch no*ice was ser,e+ in case o8 *ermina*ion o8 employmen* wi*ho)* <)s* ca)se, may hol+ *he employee liable 8or +ama-es /he employee, )pon whom no s)ch no*ice was ser,e+ in case o8 *ermina*ion o8 employmen* wi*ho)* <)s* ca)se, shall be en*i*le+ *o compensa*ion 8rom *he +a*e o8 *ermina*ion o8 his employmen* in an amo)n* e=)i,alen* *o his salaries or wa-es correspon+in- *o *he re=)ire+ perio+ o8 no*ice

Ar* 260 %e-)lar an+ cas)al employmen* /he pro,isions o8 wri**en a-reemen* *o *he con*rary no*wi*hs*an+in- an+ re-ar+less o8 *he oral a-reemen* o8 *he par*ies, an employmen* shall be +eeme+ *o be re-)lar where *he employee has been en-a-e+ *o per8orm ac*i,i*ies which are )s)ally necessary or +esirable in *he )s)al b)siness or *ra+e o8 *he employer, e(cep* where *he employmen* has been 8i(e+ 8or a speci8ic pro<ec* or )n+er*akin- *he comple*ion or *ermina*ion o8 which has been +e*ermine+ a* *he *ime o8 *he en-a-emen* o8 *he employee or where *he work or ser,ice *o be per8orme+ is seasonal in na*)re an+ *he employmen* is 8or *he +)ra*ion o8 *he season An employmen* shall be +eeme+ *o be cas)al i8 i* is no* co,ere+ by *he prece+inpara-raph> Pro,i+e+, /ha* any employee who has ren+ere+ a* leas* one year o8 ser,ice, whe*her s)ch ser,ice is con*in)o)s or broken, shall be consi+ere+ a re-)lar employee wi*h respec* *o *he ac*i,i*y in which he is employe+ an+ his employmen* shall con*in)e while s)ch ac*i,i*y e(is*s

Labor Law 1
a+mi**e+ly was enac*e+ 9*o pre,en* *he circ)m,en*ion o8 *he ri-h* o8 *he employee *o be sec)re+ in !his' employmen*J9 - A260LC, )n+er a narrow an+ li*eral in*erpre*a*ion wo)l+ appear *o res*ric*, wi*ho)* reasonable +is*inc*ions, *he ri-h* o8 an employee *o 8reely s*ip)la*e wi*h his employer *he +)ra*ion o8 his en-a-emen*, i* lo-ically 8ollows *ha* s)ch a li*eral in*erpre*a*ion sho)l+ be eschewe+ or a,oi+e+ /he law m)s* be -i,en a reasonable in*erpre*a*ion, *o precl)+e abs)r+i*y in i*s applica*ion 3)*lawin- *he whole concep* o8 *erm employmen* an+ s)b,er*in- *o boo* *he principle o8 8ree+om o8 con*rac* *o reme+y *he e,il o8 employer2s )sin- i* as a means *o pre,en* *heir employees 8rom ob*ainin- sec)ri*y o8 *en)re is like c)**ino88 *he nose *o spi*e *he 8ace or, more rele,an*ly, c)rin- a hea+ache by loppin- o88 *he hea+ - Familiar e(amples o8 employmen* con*rac*s which may be nei*her 8or seasonal work nor 8or speci8ic pro<ec*s, b)* *o which a 8i(e+ *erm is essen*ial> o,erseas employmen* con*rac*s *o which, *he concep* o8 re-)lar employmen* will all *ha* i* implies +oes no* appear e,er *o ha,e been applie+, Ar*icle 260 o8 *he Labor Co+e no* wi*hs*an+in-@ appoin*men*s *o *he posi*ions o8 +ean, assis*an* +ean, colle-e secre*ary, principal, an+ o*her a+minis*ra*i,e o88ices in e+)ca*ional ins*i*)*ions, which are by prac*ice or *ra+i*ion ro*a*e+ amon- *he 8ac)l*y members, an+ where 8i(e+ *erms are a necessi*y, wi*ho)* which no reasonable ro*a*ion wo)l+ be possible Despi*e *he pro,isions o8 Ar*icle 260, Policy, Ins*r)c*ions ;o 6 o8 *he "inis*er o8 Labor implici*ly reco-ni4e *ha* cer*ain company o88icials may be elec*e+ 8or wha* wo)l+ amo)n* *o 8i(e+ perio+s, a* *he e(pira*ion o8 which *hey wo)l+ ha,e *o s*an+ +own, in pro,i+in- *ha* *hese o88icials,9 may lose *heir <obs as presi+en*, e(ec)*i,e ,icepresi+en* or ,ice-presi+en*, e*c beca)se *he s*ockhol+ers or *he boar+ o8 +irec*ors 8or one reason or ano*her +i+ no* re-elec* *hem 9 - :ince *he en*ire p)rpose behin+ *he +e,elopmen* o8 le-isla*ion c)lmina*in- in *he presen* Ar*icle 260 o8 *he Labor Co+e clearly appears *o ha,e been *o pre,en* circ)m,en*ion o8 *he employee2s ri-h* *o be sec)re in his *en)re, *he cla)se in sai+ ar*icle in+iscrimina*ely an+ comple*ely r)lin- o)* all wri**en or oral a-reemen*s con8lic*in- wi*h *he concep* o8 re-)lar employmen* as +e8ine+ *herein sho)l+ be cons*r)e+ *o re8er *o *he s)bs*an*i,e e,il *ha* *he Co+e i*sel8 has sin-le+ o)*> a-reemen*s en*ere+ in*o precisely *o circ)m,en* sec)ri*y o8 *en)re I* sho)l+ ha,e no applica*ion *o ins*ances where a 8i(e+ perio+ o8 employmen* was a-ree+ )pon knowin-ly an+ ,ol)n*arily by *he par*ies, wi*ho)* any 8orce, +)ress or improper press)re bein- bro)-h* *o bear )pon *he employee an+ absen* any o*her circ)ms*ances ,i*ia*in- his consen*, or where i* sa*is8ac*orily appears *ha* *he employer an+ employee +eal* wi*h each o*her on more or less e=)al *erms wi*h no moral +ominance wha*e,er bein- e(ercise+ by *he 8ormer o,er *he la**er .nless *h)s limi*e+ in i*s p)r,iew, *he law wo)l+ be ma+e *o apply *o p)rposes o*her *han *hose e(plici*ly s*a*e+ by i*s 8ramers@ i* *h)s becomes poin*less an+ arbi*rary, )n<)s* in i*s e88ec*s an+ ap* *o lea+ *o abs)r+ an+ )nin*en+e+ conse=)ences Disposition *he p)blic respon+en*2s Decision complaine+ o8 is %$K$%:$D an+ :$/ A:ID$ %espon+en* Ale-re2s con*rac* o8 employmen* wi*h #ren* :chool ha,in- law8)lly *ermina*e+ wi*h an+ by reason o8 *he e(pira*ion o8 *he a-ree+ *erm o8 perio+ *hereo8, he is +eclare+ no* en*i*le+ *o reins*a*emen* an+ *he o*her relie8 awar+e+ an+ con8irme+ on appeal in *he procee+in-s below

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Disini

VIERNES V NLRC (BENGUET ELECTRIC COOP) 400 SCRA 55$ AUS*RIA+MAR*INE,; A-)./ 4, 2000
FACTS - /he 1H complainan*sE ser,ices were con*rac*e+ as me*er rea+ers by #en-)e* $lec*ric Coopera*i,e !#$;$C3' 8or less *han a mon*hEs +)ra*ion 8rom 3c*ober 6 *o 31, 1990 /heir employmen* con*rac*s, co)che+ in i+en*ical *erms, rea+> &o) are hereby appoin*e+ as "$/$% %$AD$% !APP%$;/IC$' )n+er #$;$C3-;$A "ana-emen* wi*h compensa*ion a* *he ra*e o8 :IL/&-:IL P$:3: A;D :$K$;/&-FIK$ C$;/AK3: !P77 IH' per +ay 8rom 3c*ober 06 *o 31, 1990 - /he sai+ *erm no*wi*hs*an+in-, *he complainan*s were allowe+ *o work beyon+ 3c*ober 31, 1990, or )n*il 5an)ary 2, 1991 3n 5an)ary 3, 1991, *hey were each ser,e+ *heir i+en*ical no*ices o8 *ermina*ion +a*e+ December 29, 1990 /he same rea+> Please be in8orme+ *ha* e88ec*i,e a* *he close o8 o88ice ho)rs o8 December 31, 1990, yo)r ser,ices wi*h *he #$;$C3 will be *ermina*e+ &o)r *ermina*ion has no*hin- *o +o wi*h yo)r per8ormance %a*her, i* is beca)se we ha,e *o re*rench on personnel as we are alrea+y o,ers*a88e+ - /he complainan*s 8ile+ separa*e complain*s 8or ille-al +ismissal I* is *he con*en*ion o8 *he complainan*s *ha* *hey were no* appren*ices b)* re-)lar employees whose ser,ices were ille-ally an+ )n<)s*ly *ermina*e+ in a manner *ha* was whimsical an+ capricio)s 3n *he o*her han+, *he respon+en* in,okes Ar*icle 263 o8 *he Labor Co+e in +e8ense o8 *he =)es*ione+ +ismissal - /he Labor Arbi*er +ismisse+ *he complain*s 8or ille-al +ismissal b)* +irec*e+ #$;$C3 *o e(*en+ *he con*rac* o8 each complainan*, wi*h *he e(cep*ion o8 Kiernes who was or+ere+ *o be appoin*e+ as re-)lar employee, a mon*hEs salary as in+emni*y 8or 8ail)re *o -i,e *he 30-+ay no*ice, an+ backwa-es - /he ;L%C +eclare+ *he complainan*sE +ismissal ille-al, *h)s or+erin- *heir reins*a*emen* *o *heir 8ormer posi*ion as me*er rea+ers or *o any e=)i,alen* posi*ion wi*h paymen* o8 backwa-es limi*e+ *o one year b)* +ele*in- *he awar+ o8 in+emni*y an+ a**orneyEs 8ees /he awar+ o8 )n+erpaymen* o8 wa-es was a88irme+ ISSUES 1 13; *he ;L%C commi**e+ -ra,e ab)se o8 +iscre*ion in or+erin- *he reins*a*emen* o8 pe*i*ioners *o *heir 8ormer posi*ion as me*er rea+ers on proba*ionary s*a*)s in spi*e o8 i*s 8in+in- *ha* *hey are re-)lar employees )n+er Ar*icle 260 o8 *he Labor Co+e 2 13; *he ;L%C commi**e+ -ra,e ab)se o8 +iscre*ion in limi*in- *he backwa-es o8 pe*i*ioners *o one year only in spi*e o8 i*s 8in+in- *ha* *hey were ille-ally +ismisse+, which is con*rary *o *he man+a*e o8 8)ll backwa-es )n*il ac*)al reins*a*emen* b)* no* *o e(cee+ 3 years 3 13; *he ;L%C commi**e+ -ra,e ab)se o8 +iscre*ion in +ele*in- *he awar+ o8 in+emni*y pay which ha+ become 8inal beca)se i* was no* appeale+ an+ in +ele*in- *he awar+ o8 a**orneyEs 8ees beca)se o8 *he absence o8 a *rial-*ype hearinA 13; *he man+a*e o8 imme+ia*ely e(ec)*ory on *he reins*a*emen* aspec* e,en pen+in- appeal as pro,i+e+ in *he +ecision o8 Labor Arbi*ers e=)ally applies in *he +ecision o8 *he ;L%C e,en pen+in- appeal, by means o8 a mo*ion 8or reconsi+era*ion o8 *he or+er reins*a*in- a +ismisse+ employee or pen+in- appeal beca)se *he case is ele,a*e+ on cer*iorari be8ore *he :)preme Co)r* HELD 1 &$: Ratio /here are *wo separa*e ins*ances whereby i* can be +e*ermine+ *ha* an employmen* is re-)lar> !1' /he par*ic)lar ac*i,i*y per8orme+ by *he employee is necessary or +esirable in

CIELO V NLRC MILLARES V NLRC (TRANS-GLOBAL MARITIME AGENCY, ESSO INTERNATIONAL SHIPPING COMPANY) [PAGE $9]

Labor Law 1
*he )s)al b)siness or *ra+e o8 *he employer@ or !2' i8 *he employee has been per8ormin- *he <ob 8or a* leas* a year Reasoning - Pe*i*ioners 8all )n+er *he 8irs* ca*e-ory /hey were en-a-e+ *o per8orm ac*i,i*ies *ha* are necessary *o *he )s)al b)siness o8 #$;$C3 1e a-ree wi*h *he labor arbi*erEs prono)ncemen* *ha* *he <ob o8 a me*er rea+er is necessary *o *he b)siness o8 #$;$C3 beca)se )nless a me*er rea+er recor+s *he elec*ric cons)mp*ion o8 *he s)bscribin- p)blic, *here co)l+ no* be a ,ali+ basis 8or billin- *he c)s*omers /he 8ac* *ha* *he pe*i*ioners were allowe+ *o con*in)e workin- a8*er *he e(pira*ion o8 *heir employmen* con*rac* is e,i+ence o8 *he necessi*y an+ +esirabili*y o8 *heir ser,ice *o #$;$C3Es b)siness In a++i*ion, +)rin- *he preliminary hearin- o8 *he case on Febr)ary A, 1991, #$;$C3 e,en o88ere+ *o en*er in*o ano*her *emporary employmen* con*rac* wi*h pe*i*ioners /his only pro,es #$;$C3Es nee+ 8or *he ser,ices o8 *he pe*i*ioners 1i*h *he con*in)a*ion o8 *heir employmen* beyon+ *he ori-inal *erm, pe*i*ioners ha,e become 8)ll-8le+-e+ re-)lar employees /he 8ac* alone *ha* *he pe*i*ioners ha,e ren+ere+ ser,ice 8or a perio+ o8 less *han 7 mon*hs +oes no* make *heir employmen* s*a*)s as proba*ionary - /he principle Me(cep*ion *o *he r)le in %a*ioN en)ncia*e+ in #ren* :chool ,s Oamora applies only wi*h respec* *o 8i(e+ *erm employmen*s 1hile i* is *r)e *ha* pe*i*ioners were ini*ially employe+ on a 8i(e+ *erm basis as *heir employmen* con*rac*s were only 8or 3c*ober 6 *o 31, 1990, a8*er 3c*ober 31, 1990, *hey were allowe+ *o con*in)e workin- in *he same capaci*y as me*er rea+ers wi*ho)* *he bene8i* o8 a new con*rac* or a-reemen* or wi*ho)* *he *erm o8 *heir employmen* bein- 8i(e+ anew A8*er 3c*ober 31, 1990, *he employmen* o8 pe*i*ioners is no lon-er on a 8i(e+ *erm basis /he comple(ion o8 *he employmen* rela*ionship o8 pe*i*ioners an+ #$;$C3 is *hereby *o*ally chan-e+ Pe*i*ioners ha,e a**aine+ *he s*a*)s o8 re-)lar employees 2 &$: Reasoning - A2I9 LC, as amen+e+ by %A 7I1H Me88ec*i,e "arch 21, 1969N, pro,i+es *ha* an ille-ally +ismisse+ employee is en*i*le+ *o 8)ll back wa-es, incl)si,e o8 allowances, an+ *o his o*her bene8i*s or *heir mone*ary e=)i,alen* comp)*e+ 8rom *he *ime his compensa*ion was wi*hhel+ 8rom him )p *o *he *ime o8 his ac*)al reins*a*emen* :ince pe*i*ioners were employe+ on 3c*ober 6, 1990, *he amen+e+ pro,ision shall apply *o *he presen* case Gence, i* was pa*en*ly erroneo)s, *an*amo)n* *o -ra,e ab)se o8 +iscre*ion on *he par* o8 *he ;L%C in limi*in- *o one year *he back wa-es awar+e+ *o pe*i*ioners 3 &$: Ratio An employer becomes liable *o pay in+emni*y *o an employee who has been +ismisse+ i8, in e88ec*in- s)ch +ismissal, *he employer 8ails *o comply wi*h *he re=)iremen*s o8 +)e process Reasoning - /he in+emni*y is in *he 8orm o8 nominal +ama-es in*en+e+ no* *o penali4e *he employer b)* *o ,in+ica*e or reco-ni4e *he employeeEs ri-h* *o proce+)ral +)e process which was ,iola*e+ by *he employer .n+er A2221 CC, nominal +ama-es are a+<)+ica*e+ in or+er *ha* a ri-h* o8 *he plain*i88, which has been ,iola*e+ or in,a+e+ by *he +e8en+an*, may be ,in+ica*e+ or reco-ni4e+, an+ no* 8or *he p)rpose o8 in+emni8yin- *he plain*i88 8or any loss s)88ere+ by him - In+emni*y is no* incompa*ible wi*h *he awar+ o8 back wa-es /hese *wo awar+s are base+ on +i88eren* consi+era*ions #ack wa-es are -ran*e+ on -ro)n+s o8 e=)i*y *o workers 8or earnin-s los* +)e *o *heir ille-al +ismissal 8rom work 3n *he o*her han+, *he awar+ o8 in+emni*y is mean* *o ,in+ica*e or reco-ni4e *he ri-h* o8 an employee *o +)e process which has been ,iola*e+ by *he employer In *his case, #$;$C3 8aile+ *o comply wi*h *he pro,isions o8 Ar*icle 263 o8 *he Labor Co+e which re=)ires an employer *o ser,e a no*ice o8 +ismissal )pon *he employees an+ *o *he Depar*men* o8 Labor, a* leas* one mon*h be8ore *he in*en+e+ +a*e o8 *ermina*ion As *o *he awar+ o8 a**orneyEs 8ees, *he same is <)s*i8ie+ by *he pro,isions o8 Ar*icle 111 o8 *he Labor Co+e

A2010

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Disini

A &$: Reasoning - A223 LC is plain an+ clear *ha* *he +ecision o8 *he ;L%C shall be 8inal an+ e(ec)*ory a8*er 10 calen+ar +ays 8rom receip* by *he par*ies In a++i*ion, :ec*ion 2!b', %)le KIII o8 *he ;ew %)les o8 Proce+)re o8 *he ;L%C pro,i+es *ha* Bsho)l+ *here be a mo*ion 8or reconsi+era*ion en*er*aine+ p)rs)an* *o :ec*ion 1A, %)le KII o8 *hese %)les, *he +ecision shall be e(ec)*ory a8*er 10 calen+ar +ays 8rom receip* o8 *he resol)*ion on s)ch mo*ion D 1e 8in+ no*hin- inconsis*en* or con*ra+ic*ory be*ween *he *wo /he pro,ision o8 *he ;L%C %)les o8 Proce+)re merely pro,i+es 8or si*)a*ions where a mo*ion 8or reconsi+era*ion is 8ile+ :ince *he %)les allow *he 8ilin- o8 a mo*ion 8or reconsi+era*ion o8 a +ecision o8 *he ;L%C, i* simply 8ollows *ha* *he *en-+ay perio+ pro,i+e+ )n+er Ar*icle 223 o8 *he Labor Co+e sho)l+ be reckone+ 8rom *he +a*e o8 receip* by *he par*ies o8 *he resol)*ion on s)ch mo*ion In *he case a* bar, pe*i*ioners recei,e+ *he resol)*ion o8 *he ;L%C +enyin- *heir mo*ion 8or reconsi+era*ion on 3c*ober 22, 1992 Gence, i* is on ;o,ember 2, 1992 *ha* *he =)es*ione+ +ecision became e(ec)*ory Disposition Pe*i*ion PA%/L& 0%A;/$D Decision o8 *he ;L%C is "3DIFI$D #$;$C3 is or+ere+ *o reins*a*e pe*i*ioners *o *heir 8ormer or s)bs*an*ially e=)i,alen* posi*ion as re-)lar employees, wi*ho)* loss o8 seniori*y ri-h*s an+ o*her pri,ile-es, wi*h 8)ll back wa-es 8rom *he *ime o8 *heir +ismissal )n*il *hey are ac*)ally reins*a*e+ /he in+emni*y *o pe*i*ioners is %$I;:/A/$D #$;$C3 is also or+ere+ *o pay a**orneyEs 8ees in *he amo)n* o8 10P o8 *he *o*al mone*ary awar+ +)e *o *he pe*i*ioners In all o*her respec*s *he assaile+ +ecision an+ resol)*ion are AFFI%"$D

PHILIPS SEMICONDUCTORS V FADRIQUELA [PAGE $$] PANGILINAN V GENERAL MILLING CORPORATION [PAGE $4]

SEASONAL EMPLOYEES
MAGCALAS V NLRC (KOPPEL INC) 269 SCRA 450 PANGANIBAN; Ma)12 10, 199$
NATURE Appeal 8rom +ecision o8 *he ;L%C FACTS - Complainan*s alle-e+ *ha* *hey were all re-)lar employees o8 *he respon+en* company, ha,in- ren+ere+ con*in)o)s ser,ices in ,ario)s capaci*ies, ran-in- 8rom lea+man, *insmi*h, *ra+eshelper *o -eneral clerk - /he complainan*s ha,e worke+ 8or a n)mber o8 years, *he minim)m o8 which was 1 H years an+ *he ma(im)m was 6 years )n+er se,eral s)per,isors - A)-)s* 30, 1966> *hey were +ismisse+ wi*ho)* prior no*ice an+ in,es*i-a*ion, an+ *ha* *heir +ismissals were e88ec*e+ 8or no o*her ca)se *han *heir persis*en* +eman+s 8or paymen* o8 money claims as man+a*e+ by law - %espon+en* company a,erre+ *ha* *he man)8ac*)rin- aspec* o8 i*s opera*ion is han+le+ by i*s re-)lar employees, while *he ins*alla*ion aspec*, by reason o8 i*s in*ermi**ence, is carrie+ o)* by i*s pro<ec* or con*rac* employees

Labor Law 1
- /he complainan*s herein were amon- *he con*rac* employees hire+ by *he respon+en* *o ins*all *he air-con+i*ionine=)ipmen* a* *he AD# an+ In*erbank pro<ec*s - 1i*h *he comple*ion o8 *heir *ask in *heir respec*i,e pro<ec*s, *he employmen* o8 *he complainan*s e(pire+ as *hey ha+ no more work *o +o - Labor arbi*er or+ere+ pe*i*ioners *o be reins*a*e+ an+ *o be pai+ backwa-es 8rom *he *ime o8 *heir +ismissal?*ermina*ion *o *heir ac*)al reins*a*emen* - ;L%C re,erse+ +ecision an+ or+ere+ respon+en* *o pay *he pe*i*ioners *heir separa*ion pay ISSUES 1 13; pe*i*ioners were re-)lar workers )n+er *he con*empla*ion o8 A260 LC 2 13; pe*i*ioners2 *ermina*ion an+?or cessa*ion o8 *heir employmen*s on A)-)s* 30, 1966 were <)s*i8ie+ )n+er *he con*empla*ion o8 A2I9 o8 *he LC as amen+e+ HELD 1 &$: Ratio /he ser,ices o8 pro<ec* employees are co-*ermino)s wi*h *he pro<ec* an+ may be *ermina*e+ )pon *he en+ or comple*ion o8 *he pro<ec* 8or which *hey were hire+ %e-)lar employees, in con*ras*, are le-ally en*i*le+ *o remain in *he ser,ice o8 *heir employer )n*il *ha* ser,ice is *ermina*e+ by one or ano*her o8 *he reco-ni4e+ mo+es o8 *ermina*ion o8 ser,ice )n+er *he Labor Co+e Reasoning - A mere pro,ision in *he C#A reco-ni4in- con*rac* employmen* +oes no* s)88icien*ly es*ablish *ha* pe*i*ioners were ipso facto con*rac*)al or pro<ec* employees In *he same ,ein, *he in,oca*ion o8 Policy ;o 20 -o,ernin- *he employmen* o8 pro<ec* employees in *he cons*r)c*ion in+)s*ry +oes no*, by i*sel8, a)*oma*ically classi8y pri,a*e respon+en* as par* o8 *he cons*r)c*ion in+)s*ry an+ en*i*le i* *o +ismiss pe*i*ioners a* *he en+ o8 each pro<ec* /hese 8ac*s canno* be pres)me+@ *hey m)s* be s)ppor*e+ by s)bs*an*ial e,i+ence - /he recor+ +iscloses *ha* *he complainan*s worke+ no* only in one special pro<ec* b)* also ,ariably in o*her pro<ec*s?<obsi*es con*rac*e+ by Koppel Incorpora*e+ Some of them, after their tour of duty on these different jobsites were reassigned to the respondent's plant at Koppel Compound, Paraaque, etro anila! A close e(amina*ion o8 *he recor+ 8)r*her re,eals *ha* *he 9special pro<ec*s9 a* *he AD# an+ In*erbank *o which *he complainan*s were las* assi-ne+ by *he respon+en* were s*ill in opera*ion be8ore *heir alle-e+ *ermina*ion 8rom employmen* "nder these factual milieu, we believe that they had been engaged to wor# and perform activities which were necessary and desirable in the air$conditioning and refrigeration installation%repair business of the respondent employer, especially where, as in this case, the very nature of such trade indicates that it can hardly fall under the e&ception of Policy 'nstruction (o )* which applies only to the construction industry +or this reason, and considering the facts narrated in the complainants' sworn statements were neither disputed nor refuted by contrary evidence by the respondent, it becomes apparent and increasingly clear that indeed they would and ought to be classified as regular employees - %e-)lar employees canno* a* *he same *ime be pro<ec* employees Ar*icle 260 o8 *he Labor Co+e s*a*es *ha* re-)lar employees are *hose whose work is necessary or +esirable *o *he )s)al b)siness o8 *he employer /he *wo e(cep*ions 8ollowin- *he -eneral +escrip*ion o8 re-)lar employees re8er *o ei*her pro<ec* or seasonal employees - In *he realm o8 b)siness an+ in+)s*ry, we no*e *ha* 9pro<ec*9 co)l+ re8er *o one or *he o*her o8 a* leas* *wo +is*in-)ishable *ypes o8 ac*i,i*ies Firs*ly, a pro<ec* co)l+ re8er *o par*ic)lar <ob or )n+er*akin- *ha* is wi*hin *he re-)lar or )s)al b)siness o8 *he employer company, b)* which is +is*inc* an+ separa*e, an+ i+en*i8iable as s)ch, 8rom *he o*her )n+er*akin-s o8 *he company :)ch <ob or )n+er*akin- be-ins an+ en+s a* +e*ermine+ or +e*erminable *imes $mployees who are hire+ 8or *he carryin- o)* o8 one o8 *hese separa*e pro<ec*s, *he scope

A2010

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Disini

an+ +)ra*ion o8 which has been +e*ermine+ an+ ma+e known *o *he employees a* *he *ime o8 employmen*, are properly *rea*e+ as 9pro<ec* employees,9 an+ *heir ser,ices may be law8)lly *ermina*e+ a* comple*ion o8 *he pro<ec* - /he employmen* o8 seasonal employees, on *he o*her han+, le-ally en+s )pon comple*ion o8 *he pro<ec* or *he season - /he o,erwhelmin- 8ac* o8 pe*i*ioners2 con*in)o)s employmen* as 8o)n+ by *he labor arbi*er inel)+ibly shows *ha* *he pe*i*ioners were re-)lar employees 3n *he o*her han+, we 8in+ *ha* s)bs*an*ial e,i+ence, applicable laws an+ <)rispr)+ence +o no* s)ppor* *he r)lin- in *he assaile+ Decision *ha* pe*i*ioners were pro<ec* employees /he Co)r* here rei*era*es *he r)le *ha* all +o)b*s, )ncer*ain*ies, ambi-)i*ies an+ ins)88iciencies sho)l+ be resol,e+ in 8a,or o8 labor I* is a well-en*renche+ +oc*rine *ha* in ille-al +ismissal cases, *he employer has *he b)r+en o8 proo8 /his b)r+en was no* +ischar-e+ in *he presen* case 2 ;3 Ratio For a +ismissal o8 an employee *o be ,ali+, *wo re=)isi*es m)s* be me*> !1' *he employee is a88or+e+ +)e process, meanin-, he is -i,en no*ice o8 *he ca)se o8 his +ismissal an+ an a+e=)a*e oppor*)ni*y *o be hear+ an+ *o +e8en+ himsel8@ an+ !2' *he +ismissal is 8or a ,ali+ ca)se as in+ica*e+ in Ar*icle 262 o8 *he Labor Co+e Reasoning - /he ser,ices o8 pe*i*ioners were purportedly *ermina*e+ a* *he en+ o8 *he AD# an+ In*erbank pro<ec*s, b)* *his co)l+ no* ha,e been a ,ali+ ca)se 8or, as +isc)sse+ abo,e, *hey were re-)lar an+ no* pro<ec* employees - As a conse=)ence o8 *heir ille-al *ermina*ion, pe*i*ioners are en*i*le+ *o reins*a*emen* an+ backwa-es in accor+ance wi*h *he Labor Co+e /he backwa-es howe,er are *o be comp)*e+ only 8or *hree years 8rom*he +a*e o8 *heir +ismissal, wi*ho)* +e+)c*ion or =)ali8ica*ion - 1here *he ille-al +ismissal *ranspire+ be8ore *he e88ec*i,i*y o8 %A 7I1H !"arch 21, 1969', *he awar+ o8 backwa-es in 8a,or o8 *he +ismisse+ employees is limi*e+ *o *hree years wi*ho)* +e+)c*ion or =)ali8ica*ion Disposition /he pe*i*ion is 0%A;/$D /he assaile+ Decision an+ %esol)*ion are %$K$%:$D an+ :$/ A:ID$ an+ *he +ecision o8 *he labor arbi*er is %$I;:/A/$D, wi*h backwa-es *o be comp)*e+ as abo,e +isc)sse+

PHILIPPINE TOBACCO V NLRC 000 SCRA 0$ PANGANIBAN; D'1'3(') 10, 1998

NATURE Pe*i*ion 8or re,iew on cer*iorari FACTS - /his in,ol,es 2 -ro)ps o8 seasonal workers> L)ba* -ro)p an+ L)ris -ro)p /hey claime+ separa*ion bene8i*s a8*er clos)re o8 processin- plan* an+ *rans8er o8 *obacco opera*ions *o Ilocos Pe*i*ioner re8)se+ *o -ran* separa*ion pay *o L)ba* -ro)p beca)se *hey ha+ no* been -i,en work +)rin- prece+in- year I* also re8)se+ *o -ran* same *o L)ris -ro)p beca)se o8 clos)re +)e *o Bserio)s b)siness lossesD ISSUES 1 13; *he L)ris -ro)p has been ille-ally +ismisse+ 2 13; *he L)ba* -ro)p has been ille-ally +ismisse+ HELD 1 &$: - :erio)s b)siness losses were no* pro,en - /o <)s*i8y re*renchmen*> !1' losses e(pec*e+ sho)l+ be s)bs*an*ial an+ no* merely +e minimis !2' s)bs*an*ial loss m)s* be reasonably imminen* !3' re*renchmen* m)s* be reasonably necessary $mployer sho)l+ ha,e *aken o*her meas)res !A' alle-e+ losses m)s* be pro,en by s)88icien* an+ con,incin- e,i+ence - Gere, we consi+er *he 8ac* *ha* *he pe*i*ioner +i+ no* ac*)ally close i*s opera*ions b)* merely *rans8erre+ i*s processin- an+

Labor Law 1
re+ryin- opera*ions - I* was also en-a-e+ in corn an+ ren*al opera*ions - ;o*ice o8 *ermina*ion, *ho)-h iss)e+, ,iola*e+ *he one mon*h prior no*ice re=)isi*e 2 &$: - :$A:3;AL 13%K$%: 1G3 A%$ CALL$D F%3" /I"$ /3 /I"$ A;D A%$ /$"P3%A%IL& LAID 3FF D.%I;0 3FF-:$A:3; A%$ ;3/ :$PA%A/$D F%3" :$%KIC$ I; :AID P$%I3D, #./ A%$ "$%$L& C3;:ID$%$D 3; L$AK$ .;/IL %$$"PL3&$D - /he employer-employee rela*ionship be*ween pe*i*ioner an+ L)ba* -ro)p was no* *ermina*e+ a* *he en+ o8 1993 season

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Disini

- /he na*)re o8 *heir rela*ionship wi*h *he ho*el is s)ch *ha* +)rin- o88 season *hey are *emporarily lai+ o88 b)* +)rins)mmer season *hey are re-employe+, or when *heir ser,ices may be nee+e+ $ /hey are not strictly spea#ing separated from the service but are merely considered as on leave of absence without pay until they are re$employed! /heir employment relationship is never severed but only suspended! As s)ch, *hese employees can be consi+ere+ as in *he re-)lar employmen* o8 *he ho*el Disposition /he or+er appeale+ 8rom is a88irme+

SAN MIGUEL CORPORATION V NLRC (GUZMAN) [PAGE $5] MANILA HOTEL COMPANY V CIR 9 SCRA 184 BAU*IS*A ANGELO; S'-#'3(') 00, 1960
NATURE Appeal 8rom CI%Es <)+-men* FACTS - Febr)ary 2A, 1970 - /he Pines Go*el $mployees Associa*ion!PG$A' 8ile+ be8ore *he CI% a pe*i*ion prayin-, amon- o*her *hin-s, *ha* i*s employees who were workin- a* *he Pines Go*el be pai+ a++i*ional compensa*ion 8or o,er*ime ser,ice ren+ere+ +)e *o *he e(i-encies o8 *he b)siness, as well as a++i*ional compensa*ion 8or :)n+ay, le-al holi+ay an+ ni-h**ime work - /he "anila Go*el 8ile+ i*s answer +enyin- *he ma*erial a,ermen*s o8 *he pe*i*ion an+ alle-in-, amon- o*hers, *ha* i8 o,er*ime ser,ice was ren+ere+ *he same was no* a)*hori4e+ b)* was ren+ere+ ,ol)n*arily, 8or *he employees were in*eres*e+ in *he 9*ips9 o88ere+ by *he pa*rons o8 *he ho*el - CI%- <)+-e+ *ha* *he employees were en*i*le+ *o *he a++i*ional compensa*ion +eman+e+, incl)+in- *ha* 8or o,er*ime work, beca)se an employee who ren+ers o,er*ime ser,ice is en*i*le+ *o compensa*ion e,en i8 he ren+ere+ i* wi*ho)* prior a)*hori*y - "% was 8ile+, b)* *he same was +enie+ by *he in+)s*rial co)r* en banc ,awph-l!n.t - /he $(aminin- Di,ision !CI%' s)bmi**e+ a repor*- s*a*e+ *ha* *he amo)n* +)e *he employees as a++i*ional compensa*ion 8or o,er*ime an+ ni-h* ser,ices ren+ere+ 8rom 5an)ary *o December 31, 19H6 was P32,9H0 79 - /he mana-emen* 8ile+ i*s ob<ec*ion *o *he repor* on *he -ro)n+ *ha* i* incl)+e+ 22 names o8 employees who were no* employees o8 *he Pines Go*el a* *he *ime *he pe*i*ion was 8ile+ so *ha* inso8ar as sai+ employees are concerne+ *he pe*i*ion merely in,ol,es a money claim which comes )n+er *he <)ris+ic*ion o8 *he re-)lar co)r*s - /he *rial <)+-e, howe,er, o,err)le+ *his ob<ec*ion hol+in- *ha*, while *he 22 employees were ac*)ally no* in *he ser,ice a* *he *ime o8 *he 8ilin- o8 *he pe*i*ion, *hey were howe,er s)bse=)en*ly employe+ e,en +)rin- *he pen+ency o8 *he inci+en*, an+ so *heir claim comes wi*hin *he <)ris+ic*ion o8 *he Co)r* o8 In+)s*rial %ela*ions ISSUE 13; *he 22 seasonal employees were correc*ly a+<)+-e+ *he a++i*ional compensa*ion incl)+in- *ha* 8or 3/ HELD &$: Ratio :easonal employees calle+ *o work 8rom *ime *o *ime an+ *emporarily lai+ o88 8rom +)rin- o88 season are %$0.LA%: b)* are on L3A w?o pay Reasoning - I* appears *ha* *he =)es*ione+ employees were ne,er separa*e+ 8rom *he ser,ice - /heir s*a*)s is *ha* o8 re-)lar seasonal employees who are calle+ *o work 8rom *ime *o *ime, mos*ly +)rin- s)mmer season

INDUSTRIAL-COMMERCIAL-AGRICULTURAL WORKERS ORGANIZATION V CIR 16 SCRA 562 RE4ES; Ma)12 01, 1966
NATURE Appeal 8rom +ecision o8 *he Co)r* o8 In+)s*rial %ela*ions FACTS - Pe*i*ioner, In+)s*rial-Commercial- A-ric)l*)ral 1orkers2 3r-ani4a*ion !ICA13', +eclare+ a s*rike a-ains* *he respon+en* Cen*ral A4)carera +e Pilar /he s*rike was amicably se**le+ *he 8ollowin- +ay, an+ amon- *he pro,isions o8 *he 9Amicable :e**lemen*9 rea+s> 9/ha* *he company shall no* +iscrimina*e a-ains* any worker an+ *he same *rea*men* shall be accor+e+ *o workers !ICA13 a88ilia*es' who +eclare+ a s*rike or no* A pe*i*ion 8or Cer*i8ica*ion $lec*ion will be 8ile+ by *he ICA13 in ,iew o8 *he o*her labor )nion, CAPA1A, wi*h whom *he company has an e(is*in- collec*i,e bar-ainin- con*rac*, a )nion which is consi+ere+ by *he ICA13 as a company )nion 9 - /he CAPA1A *herein re8erre+ *o is *he herein respon+en* Cen*ral A4)carera +e Pilar Allie+ 1orkers Associa*ion an+ *he collec*i,e bar-ainin- con*rac*, likewise *herein re8erre+ *o, en*ere+ in*o in 19HH, pro,i+e+> 9/he $"PL3&$% a-rees *ha* in hirin- )nskille+ employees an+ laborers, *he members o8 *he 13%K$%: A::3CIA/I3; sho)l+ be -i,en pre8erence an+ *he mana-emen* sho)l+ no*i8y accor+in-ly *o *he 13%K$%: A::3CIA/I3; o8 any ,acancy e(is*in- in all Depar*men*s ;ew employees an+ laborers hire+ who are members o8 *he 13%K$%: A::3CIA/I3; will be on /$"P3%A%& :/A/.: an+ *he $"PL3&$% a-rees *ha* be8ore *hey will be consi+ere+ re-)lar employees an+ laborers *hey ha,e *o become members o8 *he C$;/%AL AO.CA%$%A D$ PILA% ALLI$D 13%K$%:2 A::3CIA/I3; wi*hin *hir*y !30' +ays 8rom *he +a*e o8 employmen* an+ i8 *hey re8)se *o a88ilia*e wi*h *he sai+ labor or-ani4a*ion wi*hin *his *ime *hey will be imme+ia*ely +ismisse+ by *he $"PL3&$%@9 - Amon- *he s*rikers were 101 seasonal workers, some o8 whom ha,e worke+ as s)ch 8or *he company since pre-war years 3n *he openin- o8 *he millin- season 8or *he year 19H7-19HI, *he respon+en* company re8)se+ *o re-a+mi* *hose 101 seasonal workers o8 *he ICA13 on *he -ro)n+ *ha* i* was precl)+e+ by *he close+ shop cla)se in i*s collec*i,e bar-ainin- a-reemen* wi*h *he CAPA1A /h)s, , *he ICA13 8ile+ an )n8air labor prac*ice char-e a-ains* *he company /he Co)r* o8 In+)s*rial %ela*ions in a +ecision or+ere+ *he reins*a*emen*, wi*h back wa-es, o8 *hese laborers@ b)* on a mo*ion 8or reconsi+era*ion, *he sai+ co)r*, en banc, re,erse+ *he sai+ +ecision ;o* sa*is8ie+ wi*h *he re,ersal, *he ICA13 8ile+ *he presen* pe*i*ion 8or cer*iorari *o re,iew *he in+)s*rial co)r*2s resol)*ion - /he pe*i*ioner con*en+s *ha* *hey are re-)lar an+ ol+ employees an+, as s)ch, *hey sho)l+ ha,e been re-hire+ a* *he s*ar*, in *he mon*h o8 3c*ober, o8 each millin- season, which )s)ally las* H mon*hs /he respon+en*s, on *he o*her han+, )r-e *ha* *hese laborers are new, *heir employmen* *ermina*in- a* *he en+ o8 each millin- season an+, *here8ore, co)l+ no* be rea+mi**e+ wi*ho)* *he company ,iola*in- *he close+ shop a-reemen* wi*h *he CAPA1A ISSUE

Labor Law 1
13; seasonal workers are new workers HELD ;3 - Pe*i*ioners, e,en i8 seasonal workers, were no* Bnew workersD wi*hin *he scope o8 *he close+ shop con*rac* be*ween *he s)-ar cen*ral an+ *he CAPA1A )nion@ hence *heir +ischar-e was ille-al - /he cessa*ion o8 *he Cen*ral2s millin- ac*i,i*ies a* *he en+ o8 *he millin- season is no* permanen* or +e8ini*i,e@ i* is a 8oreseeable s)spension o8 work, an+ bo*h ac*i,i*ies will be res)me+, as *hey are in 8ac* res)me+, when s)-ar cane ripe 8or millin- is a-ain a,ailable /here is merely a *emporary cessa*ion o8 *he man)8ac*)rin- process +)e *o passin- shor*a-e o8 raw ma*erials *ha* by i*sel8 alone is no* s)88icien*, in *he absence o8 o*her <)s*i8ie+ reasons, *o se,er *he employmen* or labor rela*ionship be*ween *he par*ies /he mere 8ac* *ha* *he laborers assen* *o *heir me+ical e(amina*ion a* *he be-innin- o8 each millin- season +oes no* in+ica*e *ha* a new labor con*rac* is bein- en*ere+ in*o, in *he absence o8 a s*ip)la*ion *o s)ch e88ec* :ai+ e(amina*ion is in *he in*eres* o8 bo*h *he Cen*ral an+ *he labor 8orce Disposition %esol)*ion se* asi+e

A2010

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Disini

HACIENDA BINO V CUENCA 456 SCRA 000 CALLE5O SR; A-)./ 15, 2005
FACTS - Gacien+a #ino !G#' is a 237-hec*are s)-ar plan*a*ion in ;e-ros 3cc, owne+ an+ opera*e+ by Gor*encia :*arke G# consis*s o8 220 workers per8ormin- ,ario)s works, s)ch as c)l*i,a*ion, plan*in- o8 cane poin*s, 8er*ili4a*ion, wa*erin-, wee+in-, har,es*in-, an+ loa+in- o8 har,es*e+ s)-arcanes *o car-o *r)cks 3n 5)ly 16 1997, :*arke iss)e+ a no*ice *ha* *hose who si-ne+ in 8a,or o8 CA%P are e(pressin- *heir +esire *o -e* o)* o8 employmen* I7 workers were a88ec*e+> *hey re-ar+e+ *he no*ice as a no*ice o8 *heir *ermina*ion /hey 8ile+ a complain* 8or ille-al +ismissal, wa-e +i88eren*ials, 13*h mon*h pay, holi+ay pay an+ premi)m pay 8or holi+ay, ser,ice incen*i,e lea,e pay, an+ moral an+ e(emplary +ama-es $ Star#e0s side1 G#Es boar+ o8 +irec*ors were pe*i*ionin- 8or reclassi8ica*ion o8 *he hacien+a !e(cep* *he por*ion earmarke+ 8or CA%P' 8rom a-ric)l*)ral *o in+)s*rial, resi+en*ial an+ commercial :he was merely -i,in- priori*y *o *hose who s)ppor*e+ *he reclassi8ica*ion 5)ly 1997 was o88-season, so no* so many workers nee+e+@ *he work was seasonal in na*)re :he relies on *he r)lin- in ercado Sr! v! (23C where s)-ar 8arm workers were classi8ie+ as seasonal employees, an+ no* re-)lar employees /he workers were 8ree *o o88er *heir ser,ices *o nei-hborin- hacien+as $ 3espondents0 side1 /hey are re-)lar employees /he hacien+a was so bi- *ha* *hey work *here year-ro)n+ an+ *ha* *hey +o no* o88er *heir ser,ices *o nei-hborin- hacien+as /he "erca+o case +eal* wi*h a 1I H-heac*are hacien+a, consi+erable smaller *han G# ISSUE 13; *he respon+en*s are seasonal employees HELD ;3 - /he respon+en*s are re-)lar employees - :*arkeEs reliance on "erca+o is misplace+ beca)se in *ha* case, *he workers were classi8ie+ as seasonal employees beca)se *hey were employe+ 8or a +e8ini*e perio+ o8 *ime since *he hacien+a was m)ch smaller, an+ *hey o88ere+ *heir ser,ices *o an+ worke+ a* *he nei-hborin- hacien+as - /he Co)r* rei*era*e+ *he same obser,a*ions in 4acienda +atima v! (ational +ederation of Sugarcane 5or#ers$+ood and 6eneral /rade an+ a++e+ *ha* *he pe*i*ioners in *he "erca+o case were 9no* hire+ re-)larly an+ repea*e+ly 8or *he same phase?s o8 a-ric)l*)ral work, b)* on an+ o88 8or any sin-le phase

*hereo8 9 :*arke +i+ no* presen* any e,i+ence *ha* *he respon+en*s were re=)ire+ *o per8orm cer*ain phases o8 a-ric)l*)ral work 8or a +e8ini*e perio+ o8 *ime Al*ho)-h she asser*e+ *ha* *he respon+en*s ma+e *heir ser,ices a,ailable *o *he nei-hborin- hacien+as, *he recor+s +o no*, howe,er, s)ppor* s)ch asser*ion - /he primary s*an+ar+ 8or +e*erminin- re-)lar employmen* is *he reasonable connec*ion be*ween *he par*ic)lar ac*i,i*y per8orme+ by *he employee in rela*ion *o *he )s)al *ra+e or b)siness o8 *he employer /here is no +o)b* *ha* *he respon+en*s were per8ormin- work necessary an+ +esirable in *he )s)al *ra+e or b)siness o8 an employer Gence, *hey can properly be classi8ie+ as re-)lar employees - For respon+en*s *o be e(cl)+e+ 8rom *hose classi8ie+ as re-)lar employees, i* is no* eno)-h *ha* *hey per8orm work or ser,ices *ha* are seasonal in na*)re /hey m)s* ha,e been employe+ only 8or *he +)ra*ion o8 one season 1hile *he recor+s s)88icien*ly show *ha* *he respon+en*s2 work in *he hacien+a was seasonal in na*)re, *here was, howe,er, no proo8 *ha* *hey were hire+ 8or *he +)ra*ion o8 one season only In 8ac*, *he payrolls, s)bmi**e+ in e,i+ence by *he pe*i*ioners, show *ha* *hey a,aile+ *he ser,ices o8 *he respon+en*s since 1991 Absen* any proo8 *o *he con*rary, *he -eneral r)le o8 re-)lar employmen* sho)l+, *here8ore, s*an+ I* bears s*ressin- *ha* *he employer has *he b)r+en o8 pro,in- *he law8)lness o8 his employee2s +ismissal Disposition Pe*i*ion +enie+ %eins*a*e workers wi*ho)* loss o8 seniori*y, pay backwa-es an+ wa-e +i88eren*ials, an+ pay a**ys 8ees

POSEIDON FISHING V NLRC (ESTOQUIA) 482 SCRA $1$ C6ICO+NA,ARIO; &'() a)y 20, 2006
FACTS - $s*o=)ia was 8irs* hire+ by PF as a Chie8 "a*e in 1966 Ge la*er on became #oa* Cap*ain@ b)* was +emo*e+ s*ill la*er *o %a+io 3pera*or In 2000, he 8aile+ *o lo- a I>2Ham call in one lo-book, b)* was able *o recor+ i* in ano*her one 1hen he reali4e+ his mis*ake, he lo--e+ *he I>2H call a8*er a I>30 am call !same +ay' /he mana-er no*ice+ *his mis*ake an+ s)mmone+ $s*o=)ia *o -e* his separa*ion pay $s*o=)ia re8)se+ *o accep* *he sep pay beca)se he belie,e+ he ha+ +one no*hin- ille-al *o warran* his imme+ia*e +ischar-e 8rom work - PF ar-)es *ha* $s*o=)ia was a cas)al?con*rac*)al employee whose ser,ices co)l+ be *ermina*e+ a* *he en+ o8 con*rac* PF con*en+s *ha* $s*o=)ia was hire+ on a por ,ia<e basis, base+ on *he Kas)n+)an which rea+s> 7(8, #ami ay sumasang$ayon na 862'(6K9: at 6" 858 ng mga gawaing magmula sa pag$alis ng lantsa sa pondohan sa (avotas patungo sa pala#ayahan; pabali# sa pondohan ng lantsa sa (avotas hanggang sa paghango ng mga #argang isda!< - LA an+ ;L%C 8o)n+ 8or $s*o=)ia ISSUE 13; $s*o=)ia was a re-)lar employee when he was +ischar-e+ 8rom work HELD &$: - PF2s in*en* *o e,a+e *he applica*ion o8 Ar*icle 260 o8 *he Labor Co+e is )nmis*akable In a span o8 12 years, $s*o=)ia worke+ 8or pe*i*ioner company 8irs* as a Chie8 "a*e, *hen #oa* Cap*ain, an+ la*er as %a+io 3pera*or Gis <ob was +irec*ly rela*e+ *o *he +eep-sea 8ishin- b)siness o8 pe*i*ioner Posei+on Gis work was, *here8ore, necessary an+ impor*an* *o *he b)siness o8 his employer :)ch bein- *he scenario in,ol,e+, pri,a*e respon+en* is consi+ere+ a re-)lar employee o8 pe*i*ioner )n+er Ar*icle 260 o8 *he Labor Co+e - "oreo,er, )nlike in *he =rent case where *he perio+ o8 *he con*rac* was 8i(e+ an+ clearly s*a*e+, *he *erms o8 employmen* o8 pri,a*e respon+en* as pro,i+e+ in *he Kas)n+)an was no*

Labor Law 1
only ,a-)e, i* also failed ! "#!$ide a% a& 'al !# ("e&ifi& da e !# "e#i!d f!# )e &!% #a& - F)r*hermore, as pe*i*ioners *hemsel,es a+mi**e+, pri,a*e respon+en* was repea*e+ly hire+ as par* o8 *he boa*2s crew an+ he ac*e+ in ,ario)s capaci*ies onboar+ *he ,essel In 'ntegrated Contractor and Plumbing 5or#s, 'nc! v! (23C, i* was hel+ *ha* *he *es* *o +e*ermine whe*her employmen* is re-)lar or no* is *he reasonable connec*ion be*ween *he par*ic)lar ac*i,i*y per8orme+ by *he employee in rela*ion *o *he )s)al b)siness or *ra+e o8 *he employer An+, i8 *he employee has been per8ormin- *he <ob 8or a* leas* one year, e,en i8 *he per8ormance is no* con*in)o)s or merely in*ermi**en*, *he law +eems *he repea*e+ an+ con*in)in- nee+ 8or i*s per8ormance as s)88icien* e,i+ence o8 *he necessi*y, i8 no* in+ispensabili*y o8 *ha* ac*i,i*y *o *he b)siness - /he ac* o8 hirin- an+ re-hirin- in ,ario)s capaci*ies is a mere -ambi* employe+ by pe*i*ioner *o *hwar* *he *en)rial pro*ec*ion o8 pri,a*e respon+en* :)ch pa**ern o8 re-hirin- an+ *he rec)rrin- nee+ 8or his ser,ices are *es*amen* *o *he necessi*y an+ in+ispensabili*y o8 s)ch ser,ices *o pe*i*ioners2 b)siness or *ra+e >S/9?"'8 'S (9/ P39@>C/%S>8S9(82 > P29A>> - /he ac*i,i*y o8 ca*chin- 8ish is a con*in)o)s process an+ co)l+ har+ly be consi+ere+ as seasonal in na*)re In Phile& ining Corp! v! (23C, "#!*e& e+"l!,ee( were +e8ine+ as *hose workers hire+ !1' 8or a speci8ic pro<ec* or )n+er*akin-, an+ !2' *he comple*ion or *ermina*ion o8 s)ch pro<ec* has been +e*ermine+ a* *he *ime o8 *he en-a-emen* o8 *he employee /he principal *es* 8or +e*erminin- whe*her par*ic)lar employees are 9pro<ec* employees9 as +is*in-)ishe+ 8rom 9re-)lar employees,9 is whe*her or no* *he 9pro<ec* employees9 were assi-ne+ *o carry o)* a 9speci8ic pro<ec* or )n+er*akin-,9 *he +)ra*ion an+ scope o8 which were speci8ie+ a* *he *ime *he employees were en-a-e+ 8or *ha* pro<ec* In *his case, pe*i*ioners ha,e no* shown *ha* pri,a*e respon+en* was in8orme+ *ha* he will be assi-ne+ *o a 9speci8ic pro<ec* or )n+er*akin- 9 ;ei*her has i* been es*ablishe+ *ha* he was in8orme+ o8 *he +)ra*ion an+ scope o8 s)ch pro<ec* or )n+er*akin- a* *he *ime o8 *heir en-a-emen* - "ore *o *he poin*, in araguinot, @r! v! (23C, *he :C r)le+ *ha* once a pro<ec* or work pool employee has been> !1' con*in)o)sly, as oppose+ *o in*ermi**en*ly, re-hire+ by *he same employer 8or *he same *asks or na*)re o8 *asks@ a%d !2' *hese *asks are ,i*al, necessary an+ in+ispensable *o *he )s)al b)siness or *ra+e o8 *he employer, *hen *he employee m)s* be +eeme+ a re-)lar employee - In 8ine, inasm)ch as pri,a*e respon+en*2s 8)nc*ions as +escribe+ abo,e are no +o)b* 9)s)ally necessary or +esirable in *he )s)al b)siness or *ra+e9 o8 pe*i*ioner 8ishin- company an+ he was hire+ con*in)o)sly 8or 12 years 8or *he same na*)re o8 *asks, we are cons*raine+ *o say *ha* he belon-s *o *he ilk o8 re-)lar employee #ein- one, pri,a*e respon+en*2s +ismissal wi*ho)* ,ali+ ca)se was ille-al An+, where ille-al +ismissal is pro,en, *he worker is en*i*le+ *o back wa-es an+ o*her similar bene8i*s wi*ho)* +e+)c*ions or con+i*ions Disposition Pe*i*ion +enie+

A2010

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Disini

&ERNAN; 5a7 a)y 00, 1989

NATURE Pe*i*ion *o re,iew *he +ecision o8 *he ;L%C FACTS - Pe*i*ioner In*erna*ional Ca*holic "i-ra*ion Commission !IC"C', a non-pro8i* or-ani4a*ion +e+ica*e+ *o re8)-ee ser,ice a* *he Philippine %e8)-ee Processin- Cen*er in "oron-, #a*aan en-a-e+ *he ser,ices o8 pri,a*e respon+en* #erna+e**e 0alanas a proba*ionary c)l*)ral orien*a*ion *eacher wi*h a mon*hly salary o8 P2,000 00 - /hree !3' mon*hs *herea8*er, pri,a*e respon+en* was in8orme+, orally an+ in wri*in-, *ha* her ser,ices were bein- *ermina*e+ 8or her 8ail)re *o mee* *he prescribe+ s*an+ar+s o8 pe*i*ioner as re8lec*e+ in *he per8ormance e,al)a*ion o8 her s)per,isors - Pri,a*e respon+en* 8ile+ a complain* 8or ille-al +ismissal, )n8air labor prac*ice an+ )npai+ wa-es a-ains* pe*i*ioner wi*h *he *hen "inis*ry o8 Labor an+ $mploymen*, prayin- 8or reins*a*emen* wi*h backwa-es, e(emplary an+ moral +ama-es - Labor Arbi*er Pela-io A Carpio ren+ere+ his +ecision +ismissin- *he complain* 8or ille-al +ismissal as well as *he complain* 8or moral an+ e(emplary +ama-es b)* or+erin- *he pe*i*ioner *o pay pri,a*e respon+en* *he s)m o8 P7,000 00 as paymen* 8or *he las* *hree !3' mon*hs o8 *he a-ree+ employmen* perio+ p)rs)an* *o her ,erbal con*rac* o8 employmen* - #o*h par*ies appeale+ *he +ecision *o *he ;a*ional Labor %ela*ions Commission - /he ;L%C, by a ma<ori*y ,o*e, s)s*aine+ *he +ecision o8 *he Labor Arbi*er an+ *h)s +ismisse+ bo*h appeals 8or lack o8 meri* - Dissa*is8ie+, pe*i*ioner 8ile+ *he ins*an* pe*i*ion ISSUE 13; an employee who was *ermina*e+ +)rin- *he proba*ionary perio+ o8 her employmen* is en*i*le+ *o her salary 8or *he )ne(pire+ por*ion o8 her si(-mon*h proba*ionary employmen* HELD ;3 - /here is <)s*i8iable basis 8or *he re,ersal o8 p)blic respon+en*2s awar+ o8 salary 8or *he )ne(pire+ *hree-mon*h por*ion o8 pri,a*e respon+en*2s si(-mon*h proba*ionary employmen* in *he li-h* o8 i*s e(press 8in+in- *ha* *here was no ille-al +ismissal - /here is no +isp)*e *ha* pri,a*e respon+en* was *ermina*e+ +)rin- her proba*ionary perio+ o8 employmen* 8or 8ail)re *o =)ali8y as a re-)lar member o8 pe*i*ioner2s *eachin- s*a88 in accor+ance wi*h i*s reasonable s*an+ar+s> pri,a*e respon+en* was 8o)n+ by pe*i*ioner *o be +e8icien* in classroom mana-emen*, *eacher-s*)+en* rela*ionship an+ *eachin*echni=)es - Fail)re *o =)ali8y as a re-)lar employee in accor+ance wi*h *he reasonable s*an+ar+s o8 *he employer is a <)s* ca)se 8or *ermina*in- a proba*ionary employee speci8ically reco-ni4e+ )n+er Ar*icle 262 !now Ar*icle 2613' o8 *he Labor Co+e - I* m)s* be no*e+ *ha* no*wi*hs*an+in- *he 8in+in- o8 le-ali*y o8 *he *ermina*ion o8 pri,a*e respon+en*, p)blic respon+en* <)s*i8ie+ *he awar+ o8 salary 8or *he )ne(pire+ por*ion o8 *he proba*ionary employmen* on *he -ro)n+ *ha* a proba*ionary employmen* 8or si( !7' mon*hs is an employmen* 8or a 9+e8ini*e perio+9 which re=)ires *he employer *o e(ha)s* *he en*ire proba*ionary perio+ *o -i,e *he employee *he oppor*)ni*y *o mee* *he re=)ire+ s*an+ar+s - /he le-al basis o8 p)blic respon+en* is erroneo)s A proba*ionary employee, as )n+ers*oo+ )n+er Ar*icle 262 !now
3
A%/ 261 Probationary employment! Q Proba*ionary employmen* shall no* e(cee+ si( mon*hs 8rom *he +a*e *he employee s*ar*e+ workin-, )nless i* is co,ere+ by an appren*iceship a-reemen* s*ip)la*in- a lon-er perio+ /he services of an employer who has been engaged in a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employer in accordance with reasonable standard made #nown by the employer to the employer at the time of his engagement! 8n employee who is allowed to wor# after a probationary period shall be considered a regular employee!

SECTION 8 EMPLOYEES -.0. EMPLOYEES

DEFINITION

PRO!ATIONARY PRO/ATIONARY

INTERNATIONAL CATHOLIC MIGRATION COMMISSION V NLRC (GALANG) 169 SCRA 606

Labor Law 1
Ar*icle 261' o8 *he Labor Co+e, is one who is on *rial by an employer +)rin- which *he employer +e*ermines whe*her or no* he is =)ali8ie+ 8or permanen* employmen* A proba*ionary appoin*men* is ma+e *o a88or+ *he employer an oppor*)ni*y *o obser,e *he 8i*ness o8 a proba*ioner while a* work, an+ *o ascer*ain whe*her he will become a proper an+ e88icien* employee - /he wor+ 9proba*ionary9, as )se+ *o +escribe *he perio+ o8 employmen*, implies *he p)rpose o8 *he *erm or perio+, b)* no* i*s len-*h - #ein- in *he na*)re o8 a 9*rial perio+9 *he essence o8 a proba*ionary perio+ o8 employmen* 8)n+amen*ally lies in *he p)rpose or ob<ec*i,e so)-h* *o be a**aine+ by bo*h *he employer an+ *he employee +)rin- sai+ perio+ /he len-*h o8 *ime is imma*erial in +e*erminin- *he correla*i,e ri-h*s o8 bo*h in +ealin- wi*h each o*her +)rin- sai+ perio+ - A261 LC -i,es ample a)*hori*y *o *he employer *o *ermina*e a proba*ionary employee 8or a <)s* ca)se or when he 8ails *o =)ali8y as a re-)lar employee in accor+ance wi*h reasonable s*an+ar+s ma+e known by *he employer *o *he employee a* *he *ime o8 his en-a-emen* - /here is no*hin- )n+er Ar*icle 261 o8 *he Labor Co+e *ha* wo)l+ precl)+e *he employer 8rom e(*en+in- a re-)lar or a permanen* appoin*men* *o an employee once *he employer 8in+s *ha* *he employee is =)ali8ie+ 8or re-)lar employmen* e,en be8ore *he e(pira*ion o8 *he proba*ionary perio+ Con,ersely, Ar*icle 261 o8 *he Labor Co+e +oes no* likewise precl)+e *he employer 8rom *ermina*in- *he proba*ionary employmen* on <)s*i8iable ca)ses as in *he ins*an* case - /here was no showin-, as borne o)* by *he recor+s, *ha* *here was circ)m,en*ion o8 *he ri-h*s o8 pri,a*e respon+en* when she was in8orme+ o8 her *ermina*ion Pri,a*e respon+en* was +)ly no*i8ie+, orally an+ in wri*in-, *ha* her ser,ices as c)l*)ral orien*a*ion *eacher were *ermina*e+ 8or 8ail)re *o mee* *he prescribe+ s*an+ar+s o8 pe*i*ioner - /he +issa*is8ac*ion o8 pe*i*ioner o,er *he per8ormance o8 pri,a*e respon+en* in *his re-ar+ is a le-i*ima*e e(ercise o8 i*s prero-a*i,e *o selec* whom *o hire or re8)se employmen* 8or *he s)ccess o8 i*s pro-ram or )n+er*akin- I* was a -ra,e ab)se o8 +iscre*ion on *he par* o8 p)blic respon+en* *o or+er pe*i*ioner *o pay pri,a*e respon+en* her salary 8or *he )ne(pire+ *hree-mon*h por*ion o8 her si(-mon*h proba*ionary employmen* when she was ,ali+ly *ermina*e+ +)rin- her proba*ionary employmen* /o sanc*ion s)ch ac*ion wo)l+ no* only be )n<)s*, b)* oppressi,e on *he par* o8 *he employer Disposition Pe*i*ion -ran*e+

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+e+)c*ions :he *hen pai+ "s Cas*ro *he P30/ b)* was no* iss)e+ any receip* - /herea8*er, she e(ec)*e+ a con*rac* o8 employmen* as a +omes*ic helper o8 one Chao G)n- Chin- o8 /aipei, /aiwan wi*h a mon*hly salary o8 ;/R1A,010, pl)s 8ree 8oo+ an+ accommo+a*ion 8or a perio+ o8 1 year - 3n 13 5an 199H, she was +eploye+ *o /aiwan As s)ch DG, she worke+ 8rom Ham )n*il 10pm Amon- her chores were *o carwash *he ,ehicle o8 her mas*er, cook *he meals, ho)secleanin- an+ babysi**in- 3n 2A 5an 199H, she ha+ a *alk wi*h her mas*er where she was *ol+ *ha* she is bein- sen* home +)e *o cer*ain problems - Complainan* plea+e+ *ha* she con*in)e her employmen*, con8ron*e+ as she was wi*h *he +eb*s she ha+ *o pay #)* she was sen* home *he 8ollowin- +ay 1hile a* *he airpor*, a cer*ain "s 0o 8orce+ her *o si-n an A88i+a,i* where i* s*a*e+ *ha* her lea,in- as a DG was ,ol)n*ary an+ *ha* she wo)l+ ass)me all *he obli-a*ions 8or her *ra,el back *o *he Philippines - :he was only pai+ *he s)m o8 ;/R1,931 !12 +ays work' - %espon+en* alle-e+ *ha* i* was s*ip)la*e+ an+ a-ree+ )pon in *he con*rac*, *ha* she wo)l+ )n+er-o a A0-+ay proba*ionary perio+ be8ore she becomes a re-)lar +omes*ic helper Also, she was char-e+ o8 her placemen* 8ees as allowe+ by law an+ by *he P3$A r)les an+ re-)la*ions D)rin- *he 8irs* 10 +ays o8 her proba*ionary perio+, she was obser,e+ *o be ina**en*i,e an+ incompe*en* *o per8orm her +)*ies an+ responsibili*ies - Labor Arbi*er r)le+ in 8a,or o8 %o+ri-)e4 - ;L%C +ele*e+ awar+ o8 P1HH/ 8or )nearne+ wa-es since *here is no ille-al +ismissal *ha* *ook place - CA re,erse+ ;L%C +ecision an+ reins*a*e+ Labor Arbi*erEs ISSUES 1 13; %o+ri-)e4 was ille-ally +ismisse+ 2 13; she was a88or+e+ +)e process HELD 1 ;3 Ratio $,en i8 i* were *r)e *ha* Ani*aEs 8orei-n employer *ermina*e+ her ser,ices a8*er 10 +ays o8 her employmen*, *here co)l+ be no ille-al +ismissal as *he *ermina*ion was e88ec*e+ +)rin- *he a-ree+ proba*ionary perio+ - /here is proba*ionary employmen*A where *he employee, )pon his en-a-emen*, is ma+e *o )n+er-o a *rial perio+ +)rin- which *he employer +e*ermines his 8i*ness *o =)ali8y 8or re-)lar employmen*, base+ on reasonable s*an+ar+s ma+e known *o him a* *he *ime o8 en-a-emen* 2 ;3 Ratio Al*ho)-h Ani*aEs employmen* was *ermina*e+ beca)se she 8aile+ *o mee* *he s*an+ar+s o8 her 8orei-n employer, s*ill i* is necessary an+ obli-a*ory *o a88or+ Ani*a her basic ri-h* *o no*ice - :ec*ion 2, %)le 1, #ook KI o8 *he 3mnib)s %)les Implemen*in*he Labor Co+e pro,i+es> B!+' In all cases o8 *ermina*ion o8 employmen*, *he 8ollowins*an+ar+s o8 +)e process shall be s)bs*an*ially obser,e+> I8 *he *ermina*ion is bro)-h* abo)* by *he comple*ion o8 a con*rac* or phase *hereo8, or by 8ail)re o8 an employee *o mee* *he s*an+ar+s o8 *he employer in *he case o8 proba*ionary employmen*, i* shall be s)88icien* *ha* a wri**en no*ice is ser,e+ *he employee wi*hin a reasonable *ime 8rom *he e88ec*i,e +a*e o8 *ermina*ion Reasoning - Ani*a was repa*ria*e+ *o *he Philippines on 2H 5an)ary 199H 3n *he ni-h* be8ore her +epar*)re, her employerEs wi8e merely *ol+ her *ha* she was sen+in- her home Bon acco)n* o8 some problem D /his in8orma*ion -i,en *o Ani*a canno* be consi+ere+ as e=)i,alen* *o *he wri**en no*ice re=)ire+ by law *o be ser,e+ on *he employee /he no*ice sho)l+ in8orm *he employee o8 *he -ro)n+ or -ro)n+s 8or his *ermina*ion an+ *ha* his +ismissal is bein- so)-h*

PHIL. FEDERATION OF CREDIT COOPERATIVES INC (PFCCI) V NLRC (ABRIL) [PAGE $0]

PURPOSE
PHILEMPLOY SERVICES V RODRIGUEZ 486 SCRA 002 CARPIO; Ma)12 01, 2006
NATURE Pe*i*ion 8or re,iew *o ann)l CA +ecision FACTS - Ani*a %3D%I0.$O applie+ wi*h respon+en* PGIL$"PL3& :er,ices an+ %eso)rces, Inc 8or +eploymen* abroa+ as a 8ac*ory worker 1hen she was aske+ *o repor* 8or work, "s #ren+a Cas*ro, an o88icial o8 respon+en*, +eman+e+ 8rom her *he s)m o8 P70/ as placemen* 8ee - :ince she co)l+ no* a88or+ s)ch amo)n*, *hey a-ree+ *ha* she wo)l+ ini*ially pay P30/ as +ownpaymen* an+ *he balance o8 P30/, pl)s IP in*eres* e,ery mon*h *herea8*er *hro)-h salary

:ec*ion 7, %)le 1, #ook KI o8 *he 3mnib)s %)les Implemen*in- *he Labor Co+e

Labor Law 1
S /h)s, absence o8 no*ice makes her *ermina*ion D$F$C/IK$ 8or which pe*i*ioner m)s* be sanc*ione+ 8or i*s non-compliance wi*h *he re=)iremen*s o8 or 8or 8ail)re *o obser,e +)e process - As hel+ in *he A-abon case> B1here *he +ismissal is 8or a <)s* ca)se, as in *he ins*an* case, *he lack o8 s*a*)*ory +)e process sho)l+ no* n)lli8y *he +ismissal, or ren+er i* ille-al, or ine88ec*)al Gowe,er, *he employer sho)l+ in+emni8y *he employee 8or *he ,iola*ion o8 his s*a*)*ory ri-h*s D Disposition Pe*i*ion 0%A;/$D CA +ecision se* asi+e Gowe,er, pe*i*ioner Philemploy :er,ices an+ %eso)rces, Inc shall pay respon+en* %o+ri-)e4 P30/ as nominal +ama-es

A2010

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Disini

DELA CRUZ V NLRC 418 SCRA 226 CORONA; D'1'3(') 11, 2000
NATURE Pe*i*ion 8or re,iew on cer*iorari FACTS - 3n "ay 2I, 1997, pe*i*ioner Florencio +e la Cr)4, 5r was hire+ by pri,a*e respon+en* :hember- "arke*in- Corpora*ion as senior sales mana-er, a newly crea*e+ posi*ion in line wi*h *he companyEs ob<ec*i,e o8 pro+)c* posi*ionin- in *he cons)mer marke* Gowe,er, on :ep* 1A, 1997, pe*i*ioner was in8orme+ *ha* his ser,ices were *ermina*e+ Gis re=)es* 8or a mee*inwi*h :hember-Es KP an+ *o be 8)rnishe+ a 30-+ay wri**en no*ice was +enie+ by mana-emen* Gence, pe*i*ioner 8ile+ a complain* 8or ille-al +ismissal , non-paymen* o8 salary, backwa-es, 13*h mon*h pay an+ +ama-es - Pri,a*e respon+en* answere+ *ha* pe*i*ionerEs +ismissal was premise+, amon- o*hers, on his )na)*hori4e+ reimb)rsemen* o8 *he plane *icke*s o8 his wi8e an+ chil+, res)l*in- *o loss o8 *r)s* an+ con8i+ence o8 *he company - Labor arbi*er r)le+ *ha* pe*i*ioner was ille-ally +ismisse+ an+ -ran*e+ his claim 8or separa*ion pay, backwa-es an+ )npai+ wa-es .pon appeal, ;L%C mo+i8ie+ *he +ecision, +ele*in- *he awar+ 8or separa*ion pay an+ backwa-es Gence, *his pe*i*ion ISSUE 13; pe*i*ioner was le-ally +ismisse+, as he was a proba*ionary employee HELD &$: - Pe*i*ioner was hire+ by :hember- on "ay 2I, 1997 an+ was *ermina*e+ on :ep* 1A, 1997 A261 LC pro,i+es> Probationary employment shall not e&ceed si& BCD months from the date the employee started wor#ing , unless it is covered in apprenticeshipE agreement stipulating a longer period! /he services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards, made #nown by the employer to the employee at the time of his engagement! 8n employee who is allowed to wor# after a probationary period shall be considered a regular employee! - /he e,i+ence on recor+ clearly shows *ha* pe*i*ioner was well in8orme+ o8 *he s*an+ar+s *o be me* be8ore he co)l+ =)ali8y as a re-)lar employee A**ache+ *o his appoin*men* papers was a <ob +escrip*ion o8 sales mana-er - A proba*ionary employee is one who, 8or a -i,en perio+ o8 *ime, is )n+er obser,a*ion or e,al)a*ion *o +e*ermine whe*her or no* he is =)ali8ie+ 8or permanen* employmen* D)rin- *he proba*ionary perio+, *he employer is -i,en *he oppor*)ni*y *o obser,e *he skill, compe*ence an+ a**i*)+e o8 *he employee while *he la**er seeks *o pro,e *o *he employer *ha* he has *he =)ali8ica*ions *o mee* *he reasonable s*an+ar+s 8or permanen* employmen* /he len-*h o8 *ime is imma*erial in +e*erminin*he correla*i,e ri-h*s o8 bo*h *he employer an+ *he employee in +ealin- wi*h each o*her +)rin- *his perio+ /here is no +isp)*e *ha* pe*i*ioner, as a proba*ionary employee en<oye+ only a *emporary employmen* s*a*)s /his

mean* *ha* he was *erminable any*ime, permanen* employmen* no* ha,in- been a**aine+ in *he mean *ime /he employer co)l+ well +eci+e he no lon-er nee+e+ *he proba*ionary employeeEs ser,ice or hi per8ormance 8ell shor* o8 e(pec*a*ion As lon- as *he *ermina*ion was ma+e be8ore *he e(pira*ion o8 *he 7-mon*h proba*ionary perio+, *he employer was well wi*hin his ri-h*s *o se,er *he employer-employee rela*ionship A con*rary in*erpre*a*ion wo)l+ +e8ec* *he clear meanin- o8 *he *erm proba*ionary In *his case, :hember- ha+ -oo+ reason *o *ermina*e pe*i*ionerEs employmen* Pe*i*ioner was hol+in- a mana-erial posi*ion in which he was *aske+ *o per8orm key 8)nc*ions in accor+ance wi*h an e(ac*in- work e*hic Gis posi*ion re=)ire+ *he 8)ll *r)s* an+ con8i+ence o8 his employer 1hile pe*i*ioner co)l+ e(ercise some +iscre*ion, *his ob,io)sly +i+ no* co,er ac*s 8or his own personal bene8i* Ge commi**e+ a *rans-ression which be*raye+ *he *r)s* an+ con8i+ence o8 his employer T reimb)rsin- his 8amilyEs personal *ra,el e(penses o)* o8 company 8)n+s Disposition Pe*i*ion is DI:"I::$D /he +ecision o8 *he CA is a88irme+

GRAND MOTORS PARTS CORP V MINISTER OF LABOR GUERRERO; 5 /y 16, 1984

NATURE Pe*i*ion 8or cer*iorari assailin- *he 3r+er o8 *he Mi%i( e# !f La0!# which affirmed the decision o8 *he 3egional :irector of 3egion F' FACTS - %espon+en* #alicena was *he #ranch "ana-er o8 *he pe*i*ioner companyEs Iloilo #ranch Ge was *he Finance 388icer o8 1arner, #arnes, U Co !no 2 o8 *he company' when alle-e+ly, "r Al8re+o Cisneros !*he *hen ac*in- branch mana-er o8 *he company in Iloilo' in+)ce+ him *o apply 8or *he posi*ion o8 #ranch "ana-er, as *heir company !pe*i*ioner' was lookin- 8or a CPA Ge applie+ 8or *he <ob an+ was accep*e+ Ge s*ar*e+ workin- 8or *he pe*i*ioner company on April 1 b)* resi-ne+ 8rom his posi*ion in 1arner, #arnes, U Co only on April 26 - Gowe,er, he was *ermina*e+ only a8*er workin- 8or *he company 8or A mon*hs !April *o A)-)s*' Pe*i*ioner company alle-e+ *ha* !a' he 8aile+ *o s)bmi* promp*ly *he mon*hly Income an+ Loss :*a*emen*, Compara*i,e Pro<ec*ions U Ac*)al :ales %epor*@ !b' *he Compara*i,e Per8ormance %epor* +a*e+ 5)ly 6, 1960 on *he opera*ion o8 *he Iloilo #ranch 8or *he mon*h o8 5)ne an+ "ay, 1960, *he Cash :ales o8 *he Iloilo #ranch wen* +own *o P91,316 A1 8or 5)ne, 1960, as compare+ wi*h *he sales 8or *he mon*h o8 "ay, 1960 in *he s)m o8 P1IA,79I II@ !c' #elicena in ,iola*ion o8 company policy an+ wi*ho)* clearance 8rom *he hea+ o88ice in Ceb), e(*en+e+ personal acco)n*s in 8a,or o8 1H persons which as o8 ;o,ember, 1960 pro+)ce+ +elin=)en* acco)n*s amo)n*in- *o P16,A3H 60@ an+ !+' #elicena claime+ lack o8 knowle+-e o8 *he ,ehic)lar acci+en* ca)se+ by a s)bor+ina*e an+ 8aile+ *o pro,i+e promp* a+minis*ra*i,e +isciplinary ac*ion a-ains* *he errin- employee /hey claime+ *ha* #alicena is only a proba*ionary employee, which wo)l+ be obser,e+ by *he company 8or A-7 mon*hs an+ *ha* #alicena knew *ha* *here is a possibili*y *ha* he wo)l+ no* -e* *he <ob - #alicena on *he o*her han+ alle-e+ *ha* he is a re-)lar employee, al*ho)-h he was no* able *o presen* any con*rac* es*ablishin- his s*a*)s as a re-)lar employee@ *ha* *he mishap involving the company's vehicle which was used without his permission and #nowledge could not be blamed upon him@ *ha* *he alle-e+ repor*s which he 8aile+ *o sen+ were no* remin+e+ *o him, ,erbally or in wri*in-@ *ha* his sales 8or *he perio+ April *o A)-)s*, 1960 is hi-her compare+ *o *ha* 8or *he same perio+ in 19I9@ an+ *ha* *he alle-e+ acco)n*s remainin- )npai+ as o8 ;o,ember 7, 1960 wo)l+ ha,e been collec*e+ in 8)ll i8 he were s*ill *he "ana-er, amon- o*her *hin-s - %e-ional Direc*or an+ "inis*er o8 Labor r)le+ in 8a,or o8 #alicena, or+erin- his reins*a*emen*, paymen* o8 his backwa-es, an+ o*her pri,ile-es

Labor Law 1
ISSUES 1 13; pri,a*e respon+en*2s employmen* as #ranch "ana-er was proba*ionary, an+ no* re-)lar an+ permanen* 2 13; pri,a*e respon+en*, i8 heEs a proba*ionary #ranch "ana-er, was *ermina*e+ 8or <)s* ca)se HELD 1 &$: Ratio In+ee+, *he employer has *he ri-h* or is a* liber*y *o choose as *o who will be hire+ an+ who will be +ecline+ I* is wi*hin *he e(ercise o8 *his ri-h* *o selec* his employees *ha* *he employer may se* or 8i( a proba*ionary perio+ wi*hin which *he la**er may *es* an+ obser,e *he con+)c* o8 *he 8ormer be8ore hirin- him permanen*ly 9/he ri-h* o8 a laborer *o sell his labor *o s)ch persons as he may choose is, in i*s essence, *he same as *he ri-h* o8 an employer *o p)rchase labor 8rom any person whom i* chooses /he employer an+ *he employee ha,e *h)s an e=)ali*y o8 ri-h* -)aran*ee+ by *he Cons*i*)*ion 2I8 *he employer can compel *he employee *o work a-ains* *he la**er2s will, *his is ser,i*)+e I8 *he employee can compel *he employer *o -i,e him work a-ains* *he employer2s will, *his is oppression 29 Reasoning - Firs*, #alicena co)l+ no* presen* any wri**en proo8 o8 his appoin*men* or employmen* as re-)lar an+ permanen* #ranch "ana-er o8 pe*i*ioner corpora*ion /hen *here was *he 8ac* *ha* he ass)me+ his work as o8 April 1 b)* resi-ne+ 8rom his pre,io)s company only on April 26, meanin- *ha* i8 he was really appoin*e+ as re-)lar an+ permanen* *hen he wo)l+ ha,e resi-ne+ imme+ia*ely 8rom his ol+ company #)* since he was no* ye* s)re o8 his s*a*)s in *he pe*i*ioner corpora*ion, he resi-ne+ la*e -:econ+, #alicena claims *ha* *here was no wri**en con*rac* beca)se *he con*rac*s were -i,en only *o *hose who will pass *he proba*ionary perio+ an+ *he rank-an+-8ile employees T no* *o *hose mana-erial ones /his prac*ice is no* s)ppor*e+ an+ con*rary *o )s)al b)siness prac*ice Also, bein- a CPA, Finance 388icer, an+ ;o 2 man in his 8ormer company, he sho)l+ ha,e insis*e+ on a wri**en con*rac* 8or *he sec)ri*y o8 his *en)re in his new posi*ionV !in shor*, he alrea+y ha+ a s*able posi*ion in his 8ormer company an+ in no* insis*in- on a wri**en con*rac*, he *ook *he risk o8 bein- <oblessC8or he may be *ermina*e+ as #ranch "ana-erV' -/hir+, #alicena ha+ ne,er been hire+ as mana-er, an+ *he pe*i*ioner company an+ #alicenaEs 8ormer company are en-a-e+ in +i88eren* kin+s o8 b)siness so i* was necessary 8or #alicena *o )n+er-o a perio+ o8 proba*ion *o *es* his =)ali8ica*ions, skills an+ e(perience since mana-in- is a new e(perience 8or him 2 &$: Ratio A proba*ionary employee may be *ermina*e+ a8*er si( mon*hs 8or a <)s* ca)se or when he 8ails *o =)ali8y as a re-)lar employee I* is *r)e *ha* mere alle-a*ion o8 loss o8 con8i+ence by employer on his employee is no* s)88icien* ca)se 8or his +ismissal #)* loss o8 con8i+ence is a ,ali+ -ro)n+ 8or +ismissinan employee, an+ proo8 beyon+ reasonable +o)b* o8 *he employee2s miscon+)c* is no* re=)ire+ *o +ismiss him o8 *his char-e I* is s)88icien* i8 *here is some basis 8or s)ch loss o8 con8i+ence Reasoning - #alicena was pro,en an+ +emons*ra*e+ *o 8ail in s)bmi**inmon*hly repor*s A mon*hly repor* o8 opera*ions is essen*ial *o *he b)siness o8 *he pe*i*ioner company, an+ *his canno* be i-nore+ by a #ranch "ana-er 8or *he ,iabili*y o8 i*s b)siness li8e may well +epen+ on *hese repor*s - :econ+, i* was pro,en *ha* a8*er bein- on *he <ob as #ranch "ana-er 8or nearly a mon*h, #alicena wro*e *o *he company *o ask wha* his +)*ies were /his mani8es*s *ha* #alicena ha+ no* shown any e88or* or ini*ia*i,e *o 8amiliari4e himsel8 wi*h his +)*ies an+ obli-a*ions, al*ho)-h pe*i*ioner corpora*ion pro,i+e+ him wi*h a broch)re con*ainin- wha* he was s)ppose+ *o +o - /hir+, he canno* escape responsibili*y 8or *he ac*s o8 his s)bor+ina*es !,ehic)lar acci+en* which he claims *ha* he +i+

A2010

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Disini

no* know' an+ 8or e(*en+in- personal acco)n*s *o some in+i,i+)als in ,iola*ion o8 *heir companyEs policy - Fo)r*h, *he sales *ar-e* were no* bein- reache+, an+ beca)se o8 *his, *he Kice Presi+en*?0" no*i8ie+ him abo)* *his !BCan we no* impro,e *ha* per8ormance *his 5)lyJD' #alicena was clearly no* +ischar-in- his +)*ies *o *he sa*is8ac*ion o8 *he mana-emen* - :3 /G$%$F3%$> BM/he Co)r* isN sa*is8ie+ *ha* pe*i*ioner has ,ali+ -ro)n+s *o char-e i*s #ranch "ana-er wi*h loss o8 con8i+ence by reason o8 *he o,erall per8ormance he has +emons*ra*e+ wi*hin *he proba*ionary perio+ which showe+ *ha* he is no* =)ali8ie+ *o be *he re-)lar or permanen* #ranch "ana-er o8 pe*i*ioner corpora*ion in Iloilo Ci*y Gis +ismissal +oes no* appear *o .s as arbi*rary, 8anci8)l or whimsical In *he las* an+ )l*ima*e analysis, t"e p#e#ogati$e an% &'%g(ent to "i#e e(p)o*ees 'n%e# te#(s an% +on%itions %esigne% to a+"ie$e s'++ess in its ,'siness a+ti$ities ,e)ongs to (anage(ent -"i+" (a* not ,e 'n%')* i(pai#e%. )i(ite% o# #est#i+te%/0 Disposition *he 3r+er o8 *he Dep)*y "inis*er o8 Labor +a*e+ 3c*ober 22, 1961 is hereby %$K$%:$D an+ :$/ A:ID$

INTERNATIONAL CATHOLIC MIGRATION COMMISSION V NLRC (GALANG) [PAGE 98] PHIL. FEDERATION OF CREDIT COOPERATIVES INC (PFCCI) V NLRC (ABRIL) [PAGE $0]

ESCORPIZO V UNIVERSITY OF BAGUIO 006 SCRA 49$ QUISUMBING; A-)./ 00, 1999
NATURE :pecial ci,il ac*ion 8or cer*iorari FACTS - Pe*i*ioner $speran4a $scorpi4o was ini*ially hire+ by respon+en* )ni,ersi*y on 5)ne 13, 1969 as a hi-h school classroom *eacher .n+er *he r)les o8 *he respon+en* )ni,ersi*y, appoin*men* *o *each +)rin- *he 8irs* *wo years a* *he )ni,ersi*y is proba*ionary in na*)re D)rin- *he proba*ion perio+, *he *eacher is obser,e+ an+ e,al)a*e+ *o +e*ermine his compe*ency A**ainmen* o8 a permanen* s*a*)s by a 8ac)l*y member is con+i*ione+ )pon compliance wi*h cer*ain re=)iremen*s, s)ch as passin- *he pro8essional boar+ e(amina*ion 8or *eachers !P#$/' - 3n "arch 16, 1991, respon+en* )ni,ersi*y in8orme+ $scorpi4o *ha* her employmen* was bein- *ermina*e+ a* *he en+ o8 *he school semes*er in ,iew o8 her 8ail)re *o pass *he P#$/ #)* be8ore *he s*ar* o8 *he school year 1991-1992, $scorpi4o reapplie+ an+ plea+e+ *ha* she be -i,en ano*her chance :he *ol+ *he respon+en* school *ha* she ha+ <)s* *aken *he P#$/ an+ hope+ *o pass i* - As $scorpi4oEs appeal was 8a,orably consi+ere+, she was allowe+ *o *each +)rin- *he school year 1991-1992 Gowe,er, her con*in)e+ employmen* was con+i*ione+ on her passin- *he P#$/ .n8or*)na*ely, $scorpi4o 8aile+ a-ain .n+a)n*e+, $scorpi4o *ook *he e(amina*ion a *hir+ *ime A* *he en+ o8 *he school year, respon+en* )ni,ersi*y e,al)a*e+ *he *eachers per8ormance *o +e*ermine who wo)l+ be in *he lis* 8or *he ne(* school year $scorpi4o, no* ha,in- passe+ *he P#$/ ye*, was no* incl)+e+ - ")ch la*er, on 5)ne 6, 1992, *he res)l*s o8 *he P#$/ were release+ an+ *his *ime $scorpi4o passe+ sai+ e(amina*ion ;e,er*heless, on 5)ne 1H, 1992, respon+en* )ni,ersi*y no lon-er renewe+ $scorpi4oEs con*rac* o8 employmen* on *he -ro)n+

Labor Law 1
*ha* she 8aile+ *o =)ali8y as a re-)lar *eacher /his promp*e+ $scorpi4o *o 8ile on 5)ly 17, 1992 a complain* 8or ille-al +ismissal, paymen* o8 backwa-es an+ reins*a*emen* a-ains* pri,a*e respon+en*s ISSUE 13; *he +ismissal was ille-al since $scorpi4o ha+ a**aine+ *he s*a*)s o8 a re-)lar employee ha,in- ren+ere+ ,ery sa*is8ac*ory per8ormance as proba*ionary *eacher 8or *wo years, consis*en* wi*h *he collec*i,e bar-ainin- a-reemen* be*ween *he respon+en* )ni,ersi*y an+ pe*i*ioner )nion o8 which $scorpi4o is a member HELD ;3 - $scorpi4o was no* ille-ally +ismisse+ Ger con*rac* merely e(pire+ Ratio A proba*ionary employee is one who, 8or a -i,en perio+ o8 *ime, is bein- obser,e+ an+ e,al)a*e+ *o +e*ermine whe*her or no* he is =)ali8ie+ 8or permanen* employmen* A proba*ionary appoin*men* a88or+s *he employer an oppor*)ni*y *o obser,e *he skill, compe*ence an+ a**i*)+e o8 a proba*ioner /he wor+ Bproba*ionaryD, as )se+ *o +escribe *he perio+ o8 employmen*, implies *he p)rpose o8 *he *erm or perio+ 1hile *he employer obser,es *he 8i*ness, proprie*y an+ e88iciency o8 a proba*ioner *o ascer*ain whe*her he is =)ali8ie+ 8or permanen* employmen*, *he proba*ioner a* *he same *ime, seeks *o pro,e *o *he employer *ha* he has *he =)ali8ica*ions *o mee* *he reasonable s*an+ar+s 8or permanen* employmen* Reasoning - *he r)les o8 *he )ni,ersi*y clearly s*a*es *ha* *he 8irs* *wo years a* *he .ni,ersi*y is proba*ionary in na*)re an+ *he 8ollowin- con+i*ions m)s* conc)r in or+er *ha* a proba*ionary *eacher may be e(*en+e+ a re-)lar appoin*men*@ !1' *he 8ac)l*y member m)s* sa*is8ac*orily comple*e *he proba*ionary perio+ o8 8o)r semes*ers or *wo years, wi*hin which his per8ormance shall be obser,e+ an+ e,al)a*e+ 8or *he p)rpose o8 +e*erminin- his compe*ency an+ 8i*ness *o be e(*en+e+ permanen* s*a*)s@ an+ !2' *he 8ac)l*y member m)s* pass *he P#$/ or an e=)i,alen* ci,il ser,ice e(amina*ion $scorpi4o 8aile+ *o mee* *he 2n+ re=)iremen* *o be a re-)lar employee which is *o pass *he P#$/ - /ho)-h *he C#A +oes no* men*ion *ha* passin- *he P#$/ is a prere=)isi*e 8or a**ainin- permanen* s*a*)s as a *eacher ;e,er*heless, *he a8oreci*e+ C#A pro,ision m)s* be rea+ in con<)nc*ion wi*h s*a*)*ory an+ a+minis*ra*i,e re-)la*ions -o,ernin- 8ac)l*y =)ali8ica*ions I* is se**le+ *ha* an e(is*inlaw en*ers in*o an+ 8orms par* o8 a ,ali+ con*rac* wi*ho)* *he nee+ 8or *he par*ies e(pressly makin- re8erence *o i* M17N F)r*her, while con*rac*in- par*ies may es*ablish s)ch s*ip)la*ions, cla)ses, *erms an+ con+i*ions as *hey may see 8i*, s)ch ri-h* *o con*rac* is s)b<ec* *o limi*a*ion *ha* *he a-reemen* m)s* no* be con*rary *o law or p)blic policy - D$C: 3r+er ;o 36, series o8 1990, a re-)la*ion implemen*inPresi+en*ial Decree ;o 1007M16N or *he Decree Pro8essionali4in- /eachin- s*ip)la*es *ha* no person shall be allowe+ *o en-a-e in *eachin- an+?or ac* as a *eacher )nless he has re-is*ere+ as pro8essional *eacher wi*h *he ;a*ional #oar+ 8or /eachers Disposition DI:"I::$D, an+ *he assaile+ %$:3L./I3; o8 p)blic respon+en* is hereby AFFI%"$D

A2010

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Disini

ORIENT E!PRESS PLACEMENT PHILIPPINES V NLRC (POEA, FLORES) 2$0 SCRA 256 BELLOSILLO; 5 7' 11, 199$
FACTS - An*onio Flores was hire+ as crane opera*or wi*h a mon*hly salary o8 .:RH00 8or 1year s)b<ec* *o a 3mon*h proba*ionary perio+ A8*er 1mon*h an+ H+ays, he was repa*ria*e+ *o *he Philippines Ge 8ile+ a complain* *o P3$A 8ro ha,in- been *ermina*e+ 8or no ,ali+ reason Gis employers 3rien* $(press an+ ;a+rico !*he 8orei-n principal' claime+ *ha* he was *ermina*e+ 8or poor <ob per8ormance as shown in his per8ormance e,al)a*ion shee* - P3$A +eci+e+ in 8a,or o8 Flores hel+ *ha* when *he -ro)n+ in,oke+ 8or +ismissal o8 an employee was incompe*ence or poor <ob per8ormance, i* m)s* be shown *ha* *he reasonable s*an+ar+s o8 work prescribe+ by *he employer were ma+e known *o *he employee /he +ismissal was )nwarran*e+ beca)se *he employers 8aile+ *o poin* o)* *he reasonable s*an+ar+s o8 work re=)ire+ - ;L%C a88irme+ P3$A +ecision on appeal I* also r)le+ *ha* *he +esi-na*ion o8 Flores as 8loorman ins*ea+ o8 crane opera*or 8or which he was hire+ ,iola*e+ his employmen* con*rac* 3rien* $(press an+ ;a+rico 8ile+ 8or "F% b)* i* was +enie+ ISSUES 1 13; ;L%C commi**e+ -ra,e ab)se o8 +iscre*ion in concl)+in- *ha* Flores was ne,er assi-ne+ as crane opera*or !no* impor*an*' 2 13; ;L%C an+ P3$A commi**e+ -ra,e ab)se o8 +iscre*ion 8or r)lin- *ha* poor <ob per8ormance an+ )ncoopera*i,e work a**i*)+e +i+ no* <)s*i8y his +ismissal HELD 1 +actual determination! ;L%C an+ P3$A +i+ o,erlook *he 8ac* *ha* *he pri,a*e respon+en* a+mi**e+ *ha* he was ale *o work as crane opera*or !as shown in his a88i+a,i*' 2 ;3 - Flores was no* ,ali+ly +ismisse+ Pe*i*ion is +enie+ - A261 LC, *he ser,ices o8 an employee hire+ on proba*ionary basis may be *ermina*e+ when he 8ails *o =)ali8y as a re-)lar employee in accor+ance wi*h reasonable s*an+ar+s ma+e known by *he employer *o *he employee a* *he *ime o8 *he en-a-emen* /he Co)r* canno* s)s*ain +ismissal on *his -ro)n+ beca)se pe*i*ioner 8aile+ *o speci8y *he reasonable s*an+ar+s by which Flores was alle-e+ *o ha,e been e,al)a*e+ *o ha,e poor per8ormance - ;ei*her o8 *he 2 ori-inal pe*i*ioners pro,i+e+ e,er ma+e men*ion *ha* he m)s* 8irs* *ake an+ pass a Crane 3pera*orsE License $(amina*ion be8ore he wo)l+ be allowe+ *o *o)ch a crane ;ei*her +i+ he know *ha* he was *o be assi-ne+ as 8loorman pen+in- *he release o8 *he e(am res)l*s Ge also +i+ no* know *ha* i8 he 8aile+ *he e(am, he wo)l+ be s)b<ec* *o a per8ormance e,al)a*ion 1 mon*h a8*er his hirin- *o +e*ermine whe*her *he company was amenable *o con*in)in- his employmen* Flores co)l+ no* be 8a)l*e+ 8or harborin- *he impression *ha* he was hire+ as crane opera*or 8or a +e8ini*e perio+ o8 1 year *o commence )pon his arri,al a* *he work-si*e an+ *o *ermina*e a* *he en+ o8 1 year ;o o*her con+i*ion was lai+ o)* e(cep* *ha* he was *o be on proba*ion 8or 3 mon*hs - D)e process +ic*a*es *ha* an employee be apprise+ be8orehan+ o8 *he con+i*ion o8 his employmen* an+ o8 *he *erms o8 a+,ancemen* *herein $,en i8 )nsa*is8ac*ory per8ormance was *r)e, i* is no* 1 o8 *he <)s* ca)ses 8or +ismissal )n+er *he LC /here was no s*an+ar+ by which s)ch proba*ionary perio+ was ma+e known *o him Disposition *he assaile+ Decision an+ %esol)*ion o8 ;L%C, +eclarin- *ha* pri,a*e respon+en* An*onio F Flores was ille-ally +ismisse+ is AFFI%"$D

EMPLOYER RI12T PERIOD3O!LI1ATION

SET

GRAND MOTORS PARTS CORP V MINISTER OF LABOR [PAGE 100]

Labor Law 1
MITSUBISHI MOTORS CORP V CHRYSLER PHIL LABOR UNION 4000 SCRA 206 CALLE5O; 5 7' 29, 2004
NATURE Pe*i*ion 8or re,iew on cer*iorari FACTS - "i*s)bishi "o*ors Philippines Corpora*ion !""PC' is a +omes*ic corpora*ion en-a-e+ in *he assembly an+ +is*rib)*ion o8 "i*s)bishi mo*or ,ehicles Chrysler Philippines Labor .nion !CPL.' is a le-i*ima*e labor or-ani4a*ion an+ *he +)ly cer*i8ie+ bar-ainin- a-en* o8 *he ho)rly-pai+ re-)lar rank an+ 8ile employees o8 ""PC ;elson Paras was a member o8 CPL. while wi8e, Cecille Paras, was *he Presi+en* o8 *he Chrysler Philippines :alarie+ $mployees .nion !CP:.' - ;elson Paras was 8irs* employe+ by ""PC as a sh)**le b)s +ri,er Ge resi-ne+ an+ wen* *o :a)+i Arabia work 1hen he re*)rne+ *o *he Philippines, he was re-hire+ as a wel+er8abrica*or a* *he ""PC :ome*ime in "ay o8 1997, Paras was re-hire+ on a proba*ionary basis as a man)8ac*)rin- *rainee a* *he Plan* $n-ineerin- "ain*enance Depar*men* As par* o8 *he ""PCEs policy, Paras was e,al)a*e+ by his imme+ia*e s)per,isors a8*er 7 mon*hs, an+ recei,e+ an a,era-e ra*in/hey in8orme+ him *ha* base+ on his per8ormance ra*in-, he wo)l+ be re-)lari4e+ Gowe,er, *he Depar*men* an+ Di,ision "ana-ers re,iewe+ *he per8ormance e,al)a*ion ma+e on Parasan+ )nanimo)sly a-ree+, alon- wi*h ParasE imme+ia*e s)per,isors, *ha* *he per8ormance o8 Paras was )nsa*is8ac*ory As a conse=)ence, Paras was no* consi+ere+ 8or re-)lari4a*ion 3n ;o,ember 27, 1997, he recei,e+ a ;o*ice o8 /ermina*ion +a*e+ ;o,ember 2H, 1997, in8ormin- him *ha* his ser,ices were *ermina*e+ e88ec*i,e *he sai+ +a*e since he 8aile+ *o mee* *he re=)ire+ company s*an+ar+s 8or re-)lari4a*ion - .*ili4in- *he -rie,ance machinery in *he collec*i,e bar-ainina-reemen*, *he CPL. +eman+e+ *he se**lemen* o8 *he +isp)*e which arose 8rom ParasE *ermina*ion /hey ar-)e+ *ha* Paras r+ was +ismisse+ on his 163 +ay o8 employmen*, or 3 +ays a8*er *he e(pira*ion o8 *he proba*ionary perio+ o8 7 mon*hs 't was contended that Paras was already a regular employee on the date of the termination of his 7probationary employment!< Accor+in- *o CPL. an+ Paras, *he la**erEs +ismissal was an o88shoo* o8 *he hea*e+ ar-)men* +)rin- *he C#A ne-o*ia*ions be*ween ""PC Labor %ela*ions "ana-er, A**y Carlos : Cao, on *he one han+, an+ Cecille Paras, *he Presi+en* o8 *he Chrysler Philippines :alarie+ $mployees .nion !CP:.' an+ ParasE wi8e, on *he o*her 1 PETITIONER4S CLAIM W Paras an+ CPL. asser*e+ *ha* p)rs)an* *o Ar*icle 13 o8 *he ;ew Ci,il Co+e, *he perio+ o8 "ay 2I, 1997 *o ;o,ember 27, 1997 consis*e+ o8 one h)n+re+ ei-h*y-*hree !163' +ays /hey asser*e+ *ha* *he ma(im)m o8 *he proba*ionary perio+ is si( !7' mon*hs, which is e=)i,alen* *o 160 +ays@ as s)ch, Paras, who *h con*in)e+ *o be employe+ e,en a8*er *he 160 +ay, ha+ become a re-)lar employee as pro,i+e+ 8or in Ar*icle 262 o8 *he Labor Co+e /hey a,erre+ *ha* as a re-)lar employee, ParasE employmen* co)l+ be *ermina*e+ only 8or <)s* or a)*hori4e+ ca)ses as pro,i+e+ 8or )n+er *he Labor Co+e, an+ a8*er +)e no*ice /hey posi*e+ *ha* in *he Le**er o8 /ermina*ion +a*e+ ;o,ember 2H, 1997, *he -ro)n+ 8or ParasE *ermina*ion was no* amon- *hose sanc*ione+ by *he Labor Co+e@ hence, his +ismissal was ille-al Paras an+ CPL. also s*resse+ *ha* he ha+ alrea+y been in *he employ o8 ""PC 8rom 3c*ober 3, 199A *o "arch 3, 199H as a wel+er-8abrica*or :)ch perio+, in a++i*ion *o *he si(-mon*h proba*ionary perio+, amo)n*e+ *o ele,en !11' mon*hs o8 ser,ice, which is s)88icien* 8or him *o be consi+ere+ as a re-)lar employee

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Disini

1 RESPONDENT4S CLAIM1 W /he ""PC, 8or i*s par*, a,erre+ *ha* )n+er Ar*icle 13 o8 *he ;ew Ci,il Co+e, ParasE proba*ionary employmen* which commence+ on "ay 2I, 1997 wo)l+ e(pire on ;o,ember 2I, 1997 :ince he recei,e+ *he no*ice o8 *ermina*ion o8 his employmen* on ;o,ember 2H, 1997, *he same sho)l+ be consi+ere+ *o ha,e been ser,e+ wi*hin *he si(-mon*h proba*ionary perio+ - CA a-ree+ wi*h *he pe*i*ioner2s claim an+ hel+ *he +ismissal o8 Paras ille-al ISSUE 13; Paras was ille-ally +ismisse+, he bein- +ismisse+ a8*er *he ma(im)m 7 mon*h proba*ion !"A& 2I, 1997 - ;3K$"#$% 23, 1997' HELD &$: Ratio In+ee+, an employer, in *he e(ercise o8 i*s mana-emen* prero-a*i,e, may hire an employee on a proba*ionary basis in or+er *o +e*ermine his 8i*ness *o per8orm work .n+er Ar*icle 261 o8 *he Labor Co+e, *he employer m)s* in8orm *he employee o8 *he s*an+ar+s 8or which his employmen* may be consi+ere+ 8or re-)lari4a*ion :)ch proba*ionary perio+, )nless co,ere+ by an appren*iceship a-reemen*, shall no* e(cee+ si( !7' mon*hs 8rom *he +a*e *he employee s*ar*e+ workin- /he employeeEs ser,ices may be *ermina*e+ 8or <)s* ca)se or 8or his 8ail)re *o =)ali8y as a re-)lar employee base+ on reasonable s*an+ar+s ma+e known *o him %espon+en* Paras was employe+ as a mana-emen* *rainee on a proba*ionary basis D)rin- *he orien*a*ion con+)c*e+ on "ay 1H, 1997, he was apprise+ o8 *he s*an+ar+s )pon which his re-)lari4a*ion wo)l+ be base+ Ge repor*e+ 8or work on "ay 2I, 1997 As per *he companyEs policy, *he proba*ionary perio+ was 8rom 3 mon*hs *o a ma(im)m o8 7 mon*hs As clearly pro,i+e+ 8or in *he las* para-raph o8 Ar*icle 13, in comp)*in- a perio+, *he 8irs* +ay shall be e(cl)+e+ an+ *he las* +ay incl)+e+ /h)s, *he one h)n+re+ ei-h*y !160' +ays commence+ on "ay 2I, 1997, an+ en+e+ on ;o,ember 23, 1997 /he *ermina*ion le**er +a*e+ ;o,ember 2H, 1997 was ser,e+ on respon+en* Paras only a* 3>00 a m o8 ;o,ember 27, 1997 Ge was, by *hen, alrea+y a re-)lar employee o8 *he pe*i*ioner )n+er A261 LC Reasoning - /he basis 8or which respon+en* ParasE ser,ices were *ermina*e+ was his alle-e+ )nsa*is8ac*ory ra*in- arisin- 8rom poor per8ormance I* is a se**le+ +oc*rine *ha* *he employer has *he b)r+en o8 pro,in- *he law8)lness o8 his employeeEs +ismissal /he ,ali+i*y o8 *he char-e m)s* be clearly es*ablishe+ in a manner consis*en* wi*h +)e process .n+er Ar*icle 262 o8 *he Labor Co+e, an )nsa*is8ac*ory ra*in- can be a <)s* ca)se 8or +ismissal only i8 i* amo)n*s *o -ross an+ habi*)al ne-lec* o8 +)*ies A care8)l per)sal o8 *he recor+s o8 *his case +oes no* show *ha* respon+en* Paras was -rossly ne-li-en* in *he per8ormance o8 his +)*ies Consi+erin- *ha* respon+en* Paras was no* +ismisse+ 8or a <)s* or a)*hori4e+ ca)se, his +ismissal 8rom employmen* was ille-al F)r*hermore, *he pe*i*ionerEs 8ail)re *o in8orm him o8 any char-es a-ains* him +epri,e+ him o8 +)e process Clearly, *he *ermina*ion o8 his employmen* base+ on his alle-e+ )nsa*is8ac*ory per8ormance ra*in- was e88ec*e+ merely *o co,er )p an+ B+eo+ori4eD *he ille-ali*y o8 his +ismissal Disposition Pe*i*ion is PARTIALLY 2RANTED. /he :ep*ember 13, 2000 Decision o8 *he Co)r* o8 Appeals in CAT0% :P ;o A7030 is hereby AFFIRMED 3ITH MODIFICATIONS. /he pe*i*ioner is ORDERED *o pay respon+en* ;elson Paras separa*ion pay e=)i,alen* *o one !1' mon*h, or *o a* leas* onehal8 !1?2' mon*h pay 8or e,ery year o8 ser,ice, whiche,er is hi-her, a 8rac*ion o8 a* leas* si( !7' mon*hs *o be consi+ere+ as one year@ an+ *o pay 8)ll backwa-es, comp)*e+ 8rom *he *ime o8 his +ismissal )p *o "arch 2H, 1996 /ha* por*ion o8 *he +ecision o8 *he Co)r* o8 Appeals +irec*in- *he reins*a*emen* o8 *he respon+en* Paras is DELETED

Labor Law 1
DURATION3E5CEPTION
BUISER V LEOGARDO 101 SCRA 151 GUERRERO; 5 /y 01, 1984
FACTS - Pe*i*ioners were employe+ by *he pri,a*e respon+en* 0$;$%AL /$L$PG3;$ DI%$C/3%& C3"PA;& as sales represen*a*i,es an+ char-e+ wi*h *he +)*y o8 solici*ina+,er*isemen*s 8or incl)sion in a *elephone +irec*ory - /he recor+s show *ha* pe*i*ioners Il)mina+a Ker #)iser an+ "a "erce+es P In*en-an en*ere+ in*o an 9$mploymen* Con*rac* !on Proba*ionary :*a*)s'9 on "ay 27, 1960 wi*h pri,a*e respon+en*, a corpora*ion en-a-e+ in *he b)siness o8 p)blica*ion an+ circ)la*ion o8 *he +irec*ory o8 *he Philippine Lon- Dis*ance /elephone Company Pe*i*ioner "a Cecilia %illoAc)na en*ere+ in*o *he same employmen* con*rac* on 5)ne 11, 1960 wi*h *he pri,a*e respon+en* Amon- o*hers, *he 9$mploymen* Con*rac* !3n Proba*ionary :*a*)s'9 incl)+e+ *he 8ollowin- common pro,isions> /he company hereby employs *he employee as *elephone represen*a*i,e on a proba*ionary s*a*)s 8or a perio+ o8 ei-h*een !16' mon*hs, i e 8rom "ay 1960 *o 3c*ober 1961, incl)si,e I* is )n+ers*oo+ *ha* +arin- *he proba*ionary perio+ o8 employmen*, *he $mployee may be *ermina*e+ a* *he pleas)re o8 *he company wi*ho)* *he necessi*y o8 -i,inno*ice o8 *ermina*ion or *he paymen* o8 *ermina*ion pay /he $mployee reco-ni4es *he 8ac* *ha* *he na*)re o8 *he *elephone sales represen*a*i,e2s <ob is s)ch *ha* *he company wo)l+ be able *o +e*ermine his *r)e charac*er, con+)c* an+ sellin- capabili*ies only a8*er *he p)blica*ion o8 *he +irec*ory, an+ *ha* i* *akes abo)* ei-h*een !16' mon*hs be8ore his wor*h as a *elephone saw represen*a*i,e can be 8)lly e,al)a*e+ inasm)ch as *he a+,er*isemen* solici*e+ by him 8or a par*ic)lar year are p)blishe+ in *he +irec*ory only *he 8ollowin- year - Pri,a*e respon+en* prescribe+ sales =)o*as *o be accomplishe+ or me* by *he pe*i*ioners Failin- *o mee* *heir respec*i,e sales =)o*as, *he pe*i*ioners were +ismisse+ 8rom *he ser,ice by *he pri,a*e respon+en*

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a8*er *he sale has been ma+e an+ only *hen win *he company be able *o e,al)a*e *he e88iciency, con+)c*, an+ sellin- abili*y o8 i*s sales represen*a*i,es, *he e,al)a*ion bein- base+ on *he p)blishe+ a+s "oreo,er, an ei-h*een mon*h proba*ionary perio+ is reco-ni4e+ by *he Labor .nion in *he pri,a*e respon+en* company, which is Ar*icle K o8 *he Collec*i,e #ar-ainin- A-reemen* 2 &$: - /he prac*ice o8 a company in layin- o88 workers beca)se *hey 8aile+ *o make *he work =)o*a has been reco-ni4e+ in *his <)ris+ic*ion !Philippine American $mbroi+eries ,s $mbroi+ery an+ 0armen* 1orkers, 27 :C%A 73A, 739' - In *he case a* bar, *he pe*i*ioners2 8ail)re *o mee* *he sales =)o*a assi-ne+ *o each o8 *hem cons*i*)*e a <)s* ca)se o8 *heir +ismissal, re-ar+less o8 *he permanen* or proba*ionary s*a*)s o8 *heir employmen* Fail)re *o obser,e prescribe+ s*an+ar+s o8 work, or *o 8)l8ill reasonable work assi-nmen*s +)e *o ine88iciency may cons*i*)*e <)s* ca)se 8or +ismissal - :)ch ine88iciency is )n+ers*oo+ *o mean 8ail)re *o a**ain work -oals or work =)o*as, ei*her by 8ailin- *o comple*e *he same wi*hin *he allo*e+ reasonable perio+, or by pro+)cin)nsa*is8ac*ory res)l*s /his mana-emen* prero-a*i,e o8 re=)irin- s*an+ar+s a,aile+ o8 so lon- as *hey are e(ercise+ in -oo+ 8ai*h 8or *he a+,ancemen* o8 *he employer2s in*eres*

INTERNATIONAL CATHOLIC MIGRATION COMMISSION V NLRC (GALANG) [PAGE 98] HOLIDAY INN MANILA V NLRC (HONASAN) 226 SCRA 41$ AUS*RIA+MAR*INE,; 5 /y 12, 2006
NATURE Appeal 8rom a +ecision o8 *he CA FACTS - Pri,a*e respon+en* 0er,asio %osaroso was employe+ as a /hir+ $n-ineer wi*h ;icolakis :hippin-, : A , a 8orei-n 8irm *hro)-h i*s recr)i*men* an+ mannin- a-ency, pe*i*ioner :kippers /he employmen* con*rac* was 8or *he perio+ o8 one year be-innin- 5)ly 10, 199I wi*h a salary o8 R600 per mon*h an+ o*her bene8i*s %osaroso boar+e+ "?K ;a,al 0en* on 5)ly 1H, 199I Ge was howe,er or+ere+ *o +isembark in #)l-aria on A)-)s* I, 199I an+ repa*ria*e+ *o *he Philippines - :oon a8*er arri,al in "anila, respon+en* 8ile+ a complain* 8or ille-al +ismissal an+ mone*ary claims /he Labor Arbi*er 8o)n+ *he respon+en* was in 8ac* ille-ally +ismisse+ an+ iss)e+ an or+er +irec*in- pe*i*ioner, :kippers, *o pay %osaroso separa*ion pay o8 R2,A000 or *he e=)i,alen* o8 P100,000, represen*in*hree mon*hs pay an+ )npai+ salary 8or se,en +ays o8 R167 79 or *he e=)i,alen* o8 PI,6A0 96 A*orneyEs 8ees o8 PH,000 was also awar+e+ /he ;L%C an+ *he CA a88irme+ en *o*o *he r)lino8 *he Arbi*er - Gence *his appeal *o *he :C ISSUE 13; pri,a*e respon+en* %osaroso was ille-al +ismisse+

ISSUE 1 13; *he proba*ionary employmen* o8 pe*i*ioners herein is ei-h*een !16' mon*hs ins*ea+ o8 *he man+a*e+ si( !7' mon*hs )n+er *he Labor Co+e, an+ 13; pe*i*ioners are en*i*le+ *o sec)ri*y o8 *en)re while )n+er sai+ proba*ion 8or 16 mon*hs 2 13; pe*i*ioners were +ismisse+ 8or a <)s* an+ ,ali+ ca)se HELD 1 0enerally, *he proba*ionary perio+ o8 employmen* is limi*e+ *o si( !7' mon*hs /he e(cep*ion *o *his -eneral r)le is when *he par*ies *o an employmen* con*rac* may a-ree o*herwise, s)ch as when *he same is es*ablishe+ by company policy or when *he same is re=)ire+ by *he na*)re o8 work *o be per8orme+ by *he employee - In *he la**er case, *here is reco-ni*ion o8 *he e(ercise o8 mana-erial prero-a*i,es in re=)irin- a lon-er perio+ o8 proba*ionary employmen*, s)ch as in *he presen* case where *he proba*ionary perio+ was se* 8or ei-h*een !16' mon*hs, i e 8rom "ay, 1960 *o 3c*ober, 1961 incl)si,e, especially where *he employee m)s* learn a par*ic)lar kin+ o8 work s)ch as sellin-, or when *he <ob re=)ires cer*ain =)ali8ica*ions, skills, e(perience or *rainin- In *he case a* bar, i* is shown *ha* pri,a*e respon+en* Company nee+s a* leas* ei-h*een !16' mon*hs *o +e*ermine *he charac*er an+ sellin- capabili*ies o8 *he pe*i*ioners as sales represen*a*i,es /he Company is en-a-e+ in a+,er*isemen* an+ p)blica*ion in *he &ellow Pa-es o8 *he PLD/ /elephone Direc*ories P)blica*ion o8 solici*e+ a+s are only ma+e a year

HELD &$: - /he employer o8 %osaroso +i+ no* pro,i+e *he =)an*)m o8 e,i+ence nee+e+ *o pro,e *ha* +ismissal was in 8ac* 8or ca)se /he e,i+ence presen*e+ was <)s* a *ele8a( comin- 8rom *he alle-e+ Chie8 $n-ineer o8 *he ,essel which *he Arbi*er )p *o *he CA consi+ere+ as mere hearsay 1hile *he "as*er o8 *he ,essel was -ra*e+ )n+er Para-raph D o8 :ec*ion 1I o8 *he Philippine 3,erseas employmen* A+minis*ra*ion !P3$A' :*an+ar+ $mploymen* con+i*ion -o,ernin- *he employmen* o8 Filipino :ea8arers on #oar+ 3cean 0oin- Kessels *he power *o +ismiss

Labor Law 1
8or <)s* ca)se wi*ho)* 8)rnishin- *he sea8arer wi*h a no*ice o8 +ismissal i8 +oin- so will pre<)+ice *he sa8e*y o8 *he crew an+ *he ,essel, *he :C no*e+ *ha* *he comple*e repor* on *he circ)ms*ances o8 *he +ismissal was no* 8orwar+e+ *o *he mannin- a-ency as calle+ 8or )n+er *he same pro,ision Mino# iss'es - /he awar+ o8 backwa-es an+ separa*ion pay in lie) o8 reins*a*emen* as pro,i+e+ 8or in Ar*icle 2I9 o8 *he Labor Co+e is no* applicable in *his case /he :ea8arer is a con*rac*)al employee whose ri-h*s an+ obli-a*ions are -o,erne+ by *he P3$A $mploymen* Con*rac* an+ by %A 60A2 !199H' /he $mploymen* con*rac* +oes no* pro,i+e 8or *he awar+ o8 separa*ion or *ermina*ion pay Gowe,er, )n+er :ec*ion 10 o8 %A 60A2 *he awar+ o8 money claims in cases o8 ille-al +ismissal is allowe+ .n+er *his pro,ision, an ille-al +ismisse+ sea8arer is en*i*le+ *o in+emni*y e=)i,alen* *o his salary 8or *he )ne(pire+ *erm o8 his employmen* con*rac* or *hree mon*hs 8or e,ery year o8 *he )ne(pire+ *erm, whiche,er is less - /he awar+ by *he Arbi*er o8 *he peso e=)i,alen* o8 *he +ollar awar+s canno* be en8orce+ as *he same is con*rary *o law /he peso e=)i,alen* m)s* be comp)*e+ a* *he e(chan-e ra*e comp)*e+ a* *he *ime o8 paymen* as pro,i+e+ 8or by %A 6163 Disposition /he =)es*ione+ +ecision is a88irme+ wi*h *he mo+i8ica*ion *ha* *he +ollar awar+ sho)l+ be payable in i*s peso e=)i,alen* comp)*e+ a* *he pre,ailin- ra*e o8 e(chan-e a* *he *ime o8 paymen*

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Disini

BERNARDO V NLRC (FAR EAST BANK AND TRUST COMPANY) 010 SCRA 186 PANGANIBAN; 5 /y 12, 1999
NATURE Pe*i*ion 8or Cer*iorari o8 5)ne 20, 199H Decision o8 ;L%C which a88irme+ *he A)-)s*, 22 199A r)lin- o8 Labor Arbi*er Linsan-an an+ A)-)s* A, 199H %esol)*ion o8 ;L%C +enyin- *he "F% FACTS $ Complainan*s n)mberin- 45 are +ea8-m)*es who were hire+ on ,ario)s perio+s 8rom 1966 *o 1993 by respon+en* Far $as* #ank an+ /r)s* Co as "oney :or*ers an+ Co)n*ers *hro)-h a )ni8ormly wor+e+ a-reemen* calle+ 9$mploymen* Con*rac* 8or Gan+icappe+ 1orkers9 In compliance wi*h Ar*icle 60 o8 *he Labor Co+e o8 *he Philippines as amen+e+, *he #A;K an+ *he $"PL3&$$ ha,e en*ere+ in*o *his $mploymen* Con*rac* as 8ollows> 1 /he #A;K a-rees *o employ an+ *rain *he $"PL3&$$, an+ *he $"PL3&$$ a-rees *o +ili-en*ly an+ 8ai*h8)lly work wi*h *he #A;K, as oney Sorter an+ Counter 2 /he $"PL3&$$ shall per8orm amon- o*hers, *he 8ollowin+)*ies an+ responsibili*ies> i :or* o)* bills accor+in- *o color@ ii Co)n* each +enomina*ion per h)n+re+, ei*her man)ally or wi*h *he ai+ o8 a co)n*in- machine@ iii 1rap an+ label bills per h)n+re+@ i, P)* *he wrappe+ bills in*o b)n+les@ an+ , :)bmi* b)n+le+ bills *o *he bank *eller 8or ,eri8ica*ion 3 /he $"PL3&$$ shall )n+er-o a *rainin- perio+ o8 one !1' mon*h, a8*er which *he #A;K shall +e*ermine whe*her or no* he?she sho)l+ be allowe+ *o 8inish *he remainin- *erm o8 *his Con*rac* A /he $"PL3&$$ shall be en*i*le+ *o an ini*ial compensa*ion o8 P116 00 per +ay, s)b<ec* *o a+<)s*men* in *he sole <)+-men* o8 *he #A;K, payable e,ery 1H*h an+ en+ o8 *he mon*h H /he re-)lar work sche+)le o8 *he $"PL3&$$ shall be 8i,e !H' +ays per week, 8rom "on+ays *hr) Fri+ays, a* ei-h* !6' ho)rs a +ay /he $"PL3&$$ may be re=)ire+ *o per8orm o,er*ime work as circ)ms*ance may warran*, 8or which o,er*ime work he?she MshallN be pai+ an a++i*ional compensa*ion o8 12HP o8 his +aily ra*e i8 per8orme+ +)rin- or+inary +ays an+ 130P i8 per8orme+ +)rin- :a*)r+ay or MaN res* +ay

7 /he $"PL3&$$ shall likewise be en*i*le+ *o *he 8ollowinbene8i*s> i Propor*iona*e 13*h mon*h pay base+ on his basic +aily wa-e ii Fi,e !H' +ays incen*i,e lea,e iii ::: premi)m paymen* I /he $"PL3&$$ bin+s himsel8?hersel8 *o abi+e MbyN an+ comply wi*h all *he #A;K %)les an+ %e-)la*ions an+ Policies, an+ *o con+)c* himsel8?hersel8 in a manner e(pec*e+ o8 all employees o8 *he #A;K 6 /he $"PL3&$$ acknowle+-es *he 8ac* *ha* he?she ha+ been employe+ )n+er a special employmen* pro-ram o8 *he #A;K, 8or which reason *he s*an+ar+ hirin- re=)iremen*s o8 *he #A;K were no* applie+ in his?her case 9 /he $mploymen* Con*rac* shall be 8or a perio+ o8 si( !7' mon*hs )nless earlier *ermina*e+ by *he #A;K 8or any <)s* or reasonable ca)se - D$AF-"./$: GI%$D W 1966 - 2 W 1969 T 2 W 1990 T 19 W 1991 T 7 W 1992 T 7 W 1993 T 21 /3/AL> H7 !las*> /helma "alin+oy who was employe+ in 1992 an+ whose con*rac* e(pire+ on 5)ly 1993' - FAR EAST states W +isclaime+ *ha* #$%;A%D3 $/ AL were re-)lar employees A;D *ha* *hey are a special class o8 workers Q *he hearinimpaire+ employees W #$%;A%D3 $/ AL were hire+ *emporarily )n+er a special employmen* arran-emen* which was a res)l* o8 o,er*)res ma+e by some ci,ic an+ poli*ical personali*ies *o *he #ank W #$%;A%D3 $/ AL were hire+ +)e *o 9paki)sap9 which m)s* be consi+ere+ in *he li-h* o8 *he con*e(* career an+ workinen,ironmen* which is *o main*ain an+ s*ren-*hen a corps o8 pro8essionals *raine+ an+ =)ali8ie+ o88icers an+ re-)lar employees who are baccala)rea*e +e-ree hol+ers 8rom e(cellen* schools which is an )nben+in- policy in *he hirin- o8 re-)lar employees W *rainin- con*in)es so *ha* *he re-)lar employee -rows in *he corpora*e la++er@ *ha* *he i+ea o8 hirin- han+icappe+ workers was accep*able *o *hem only on a special arran-emen* basis W co)n*in- an+ sor*in- o8 money are *ellerin- works which were always lo-ically an+ na*)rally par* an+ parcel o8 *he *ellers2 normal 8)nc*ions W *he *ellers *hemsel,es alrea+y +i+ *he sor*in- an+ co)n*inchore as a re-)lar 8ea*)re an+ in*e-ral par* o8 *heir +)*ies W *hro)-h *he 9paki)sap9 o8 Ar*)ro #or<al, *he *ellers were relie,e+ o8 *his *ask o8 co)n*in- an+ sor*in- bills in 8a,or o8 +ea8-m)*es wi*ho)* crea*in- new posi*ions as *here is no posi*ion ei*her in FA% $A:/ or any o*her #ank in *he Philippines which +eals wi*h p)rely co)n*in- an+ sor*in- o8 bills in bankinopera*ions - ;L%C> a88irme+ r)lin- o8 *he labor arbi*er *ha* #$%;A%D3 $/ AL co)l+ no* be +eeme+ re-)lar employees )n+er A260 LC@ -a,e cre+ence *o concl)sion *ha* #$%;A%D3 $/ AL were hire+ as an accommo+a*ion *o recommen+a*ion o8 ci,ic orien*e+ personali*ies@ *he *erms o8 *he con*rac* shall be *he law be*ween *he par*ies@ A;D "a-na Car*a 8or Disable+ Persons is no* applicable, 9consi+erin- *he pre,ailin- circ)ms*ances?milie) o8 *he case 9 ISSUES 13; ;L%C is -)il*y o8 -ra,e ab)se o8 +iscre*ion in hol+in- *ha* 1 money sor*ers an+ co)n*ers workin- in a bank are no* re-)lar employees 2 employmen* con*rac*s si-ne+ an+ renewe+ by *he pe*i*ioners, which pro,i+e 8or a perio+ o8 7 mon*hs, were ,ali+ 3 no* applyin- *he pro,isions o8 *he "a-na Car*a 8or *he Disable+ !%A I2II', on proscrip*ion a-ains* +iscrimina*ion a-ains* +isable+ persons HELD

Labor Law 1
P#e)i(ina#* Matte# $ Propriety of Certiorari> *he Co)r*, as a rule, +oes no* re,iew *he 8ac*)al 8in+in-s o8 p)blic respon+en*s in a certiorari procee+in- In resol,in- whe*her *he pe*i*ioners ha,e become re-)lar employees, :C shall no* chan-e *he 8ac*s 8o)n+ by ;L%C :CEs *ask is merely *o +e*ermine whe*her *he ;L%C commi**e+ -ra,e ab)se o8 +iscre*ion in applyin- *he law *o *he es*ablishe+ 8ac*s 1 &$: 3nly *he employees, who worke+ 8or more *han 7 mon*hs an+ whose con*rac*s were renewe+ are +eeme+ re-)lar Gence, *heir +ismissal 8rom employmen* was ille-al Reasoning - Accor+in- *o FA% $A:/, *he employmen* con*rac*s were prepare+ in accor+ance wi*h A60 LC, which pro,i+es Ar* 60 >mployment agreement Q Any employer who employs han+icappe+ workers shall en*er in*o an employmen* a-reemen* wi*h *hem, which a-reemen* shall incl)+e> !a' /he names an+ a++resses o8 *he han+icappe+ workers *o be employe+@ !b' /he ra*e *o be pai+ *he han+icappe+ workers which shall be no* less *han se,en*y 8i,e !IHP' per cen* o8 *he applicable le-al minim)m wa-e@ !c' /he +)ra*ion o8 employmen* perio+@ an+ !+' /he work *o be per8orme+ by han+icappe+ workers /he employmen* a-reemen* shall be s)b<ec* *o inspec*ion by *he :ecre*ary o8 Labor or his +)ly a)*hori4e+ represen*a*i,es - Gowe,er, s)ccee+in- e,en*s an+ *he enac*men* o8 %A ;o I2II !*he "a-na Car*a 8or Disable+ Persons' <)s*i8y *he applica*ion o8 A260 LC - FA% $A:/ en*ere+ in*o con*rac* wi*h a *o*al o8 H7 han+icappe+ workers an+ renewe+ *he con*rac*s o8 3I o8 *hem In 8ac*, *wo o8 *hem worke+ 8rom 1966 *o 1993 Kerily, *he renewal o8 *he con*rac*s o8 *he han+icappe+ workers an+ *he hirin- o8 o*hers lea+ *o *he concl)sion *ha* *heir *asks were bene8icial an+ necessary *o *he bank "ore impor*an*, *hese 8ac*s show *ha* *hey were =)ali8ie+ *o per8orm *he responsibili*ies o8 *heir posi*ions In o*her wor+s, *heir +isabili*y +i+ no* ren+er *hem )n=)ali8ie+ or )n8i* 8or *he *asks assi-ne+ *o *hem - "a-na Car*a 8or Disable+ Persons man+a*es *ha* a qualified +isable+ employee sho)l+ be -i,en *he same *erms an+ con+i*ions o8 employmen* as a qualified able-bo+ie+ person - :ec*ion H o8 *he "a-na Car*a pro,i+es> :ec H >qual 9pportunity for >mployment Q ;o +isable+ person shall be +enie+ access *o oppor*)ni*ies 8or s)i*able employmen* A =)ali8ie+ +isable+ employee shall be s)b<ec* *o *he same *erms an+ con+i*ions o8 employmen* an+ *he same compensa*ion, pri,ile-es, bene8i*s, 8rin-e bene8i*s, incen*i,es or allowances as a =)ali8ie+ able bo+ie+ person - :ince *he "a-na Car*a accor+s *hem *he ri-h*s o8 =)ali8ie+ able-bo+ie+ persons, *hey are *h)s co,ere+ by Ar*icle 260 o8 *he Labor Co+e, which pro,i+es> Ar* 260 3egular and Casual >mployment Q /he pro,isions o8 wri**en a-reemen* *o *he con*rary no*wi*hs*an+in- an+ re-ar+less o8 *he oral a-reemen* o8 *he par*ies, an employmen* shall be +eeme+ *o be re-)lar where *he employee has been en-a-e+ *o per8orm ac*i,i*ies which are )s)ally necessary or +esirable in *he )s)al b)siness or *ra+e o8 *he employer, e(cep* where *he employmen* has been 8i(e+ 8or a speci8ic pro<ec* or )n+er*akin- *he comple*ion or *ermina*ion o8 which has been +e*ermine+ a* *he *ime o8 *he en-a-emen* o8 *he employee or where *he work or ser,ices *o be per8orme+ is seasonal in na*)re an+ *he employmen* is 8or *he +)ra*ion o8 *he season An employmen* shall be +eeme+ *o be cas)al i8 i* is no* co,ere+ by *he prece+in- para-raph> Pro,i+e+, /ha*, any employee who has ren+ere+ a* leas* one year o8 ser,ice, whe*her s)ch ser,ice is con*in)o)s or broken, shall be consi+ere+ as re-)lar employee wi*h respec* *o *he ac*i,i*y in which he is employe+ an+ his employmen* shall con*in)e while s)ch ac*i,i*y e(is*s - /he *es* o8 whe*her an employee is re-)lar G :e 2eon v (23C> /he primary s*an+ar+, *here8ore, o8 +e*erminin- re-)lar employmen* is *he reasonable connec*ion

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be*ween *he par*ic)lar ac*i,i*y per8orme+ by *he employee in rela*ion *o *he )s)al *ra+e or b)siness o8 *he employer /he *es* is whe*her *he 8ormer is )s)ally necessary or +esirable in *he )s)al b)siness or *ra+e o8 *he employer /he connec*ion can be +e*ermine+ by consi+erin- *he na*)re o8 *he work per8orme+ an+ i*s rela*ion *o *he scheme o8 *he par*ic)lar b)siness or *ra+e in i*s en*ire*y Also i8 *he employee has been per8ormin*he <ob 8or a* leas* one year, e,en i8 *he per8ormance is no* con*in)o)s an+ merely in*ermi**en*, *he law +eems repea*e+ an+ con*in)in- nee+ 8or i*s per8ormance as s)88icien* e,i+ence o8 *he necessi*y i8 no* in+ispensibili*y o8 *ha* ac*i,i*y *o *he b)siness Gence, *he employmen* is consi+ere+ re-)lar, b)* only wi*h respec* *o s)ch ac*i,i*y, an+ while s)ch ac*i,i*y e(is* - /he *ask o8 co)n*in- an+ sor*in- bills is necessary an+ +esirable *o *he b)siness o8 respon+en* bank 1i*h *he e(cep*ion o8 si(*een o8 *hem, #$%;A%D3 $/ AL per8orme+ *hese *asks 8or more *han si( mon*hs - As hel+ by *he Co)r*, 9Ar*icles 260 an+ 261 o8 *he Labor Co+e p)* an en+ *o *he pernicio)s prac*ice o8 makin- permanen* cas)als o8 o)r lowly employees by *he simple e(pe+ien* o8 e(*en+in- *o *hem proba*ionary appoin*men*s, ad infinitum 9 /he con*rac* si-ne+ by pe*i*ioners is akin *o a proba*ionary employmen*, +)rin- which *he bank +e*ermine+ *he employees2 8i*ness 8or *he <ob 1hen *he bank renewe+ *he con*rac* a8*er *he lapse o8 *he si(-mon*h proba*ionary perio+, *he employees *hereby became re-)lar employees ;o employer is allowe+ *o +e*ermine in+e8ini*ely *he 8i*ness o8 i*s employees - As re-)lar employees, *he 2I pe*i*ioners are en*i*le+ *o sec)ri*y o8 *en)re@ *ha* is, *heir ser,ices may be *ermina*e+ only 8or a <)s* or a)*hori4e+ ca)se /here8ore, when FA% $A:/ 8aile+ *o show s)ch ca)se, *hey are +eeme+ ille-ally +ismisse+ an+ en*i*le+ *o back wa-es an+ reins*a*emen* wi*ho)* loss o8 seniori*y ri-h*s an+ o*her pri,ile-es Consi+erin- *ha* *he <ob o8 money sor*in- is no lon-er a,ailable beca)se i* has been assi-ne+ back *o *he *ellers *o whom i* ori-inally belon-e+, pe*i*ioners are hereby awar+e+ separa*ion pay in lie) o8 reins*a*emen* 2 &$: - =rent 3uling, which )phel+ *he ,ali+i*y o8 an employmen* con*rac* wi*h a 8i(e+ *erm, is no* applicable /he *erm limi* in *he con*rac* was premise+ on *he 8ac* *ha* *he pe*i*ioners were +isable+, an+ *ha* *he bank ha+ *o +e*ermine *heir 8i*ness 8or *he posi*ion I*s ,ali+i*y is base+ on A60 LC Pe*i*ioners pro,e+ *hemsel,es *o be qualified +isable+ persons who, )n+er *he "a-na Car*a 8or Disable+ Persons, are en*i*le+ *o *erms an+ con+i*ions o8 employmen* en<oye+ by qualified able-bo+ie+ in+i,i+)als@ hence, A60 +oes no* apply - "oreo,er, i* m)s* be emphasi4e+ *ha* a con*rac* o8 employmen* is impresse+ wi*h p)blic in*eres* Pro,isions o8 applicable s*a*)*es are +eeme+ wri**en in*o *he con*rac*, an+ *he 9par*ies are no* a* liber*y *o ins)la*e *hemsel,es an+ *heir rela*ionships 8rom *he impac* o8 labor laws an+ re-)la*ions by simply con*rac*in- wi*h each o*her 9 65 Clearly, *he a-reemen* o8 *he par*ies re-ar+in- *he perio+ o8 employmen* canno* pre,ail o,er *he pro,isions o8 *he "a-na Car*a 8or Disable+ Persons, which man+a*e *ha* pe*i*ioners m)s* be *rea*e+ as =)ali8ie+ able-bo+ie+ employees - #eca)se sor*in- is +one in *he ni-h**ime, FA% $A:/ con*en+e+ *ha* *his *ask 9co)l+ no* be +one by +ea8 m)*es beca)se o8 *heir physical limi*a*ions as i* is ,ery risky 8or *hem *o *ra,el a* ni-h* 9 #)* *he co)r* 8o)n+ no basis in *his beca)se *ra,elin- a* ni-h* in,ol,es risks *o han+icappe+ an+ able-bo+ie+ persons alike - :atu v (23C> *he +e*ermina*ion o8 whe*her employmen* is cas)al or re-)lar +oes no* +epen+ on *he will or wor+ o8 *he employer, an+ *he proce+)re o8 hirinb)* on *he na*)re o8 *he ac*i,i*ies per8orme+ by *he employee, an+ *o some e(*en*, *he len-*h o8 per8ormance an+ i*s con*in)e+ e(is*ence - /he well-se**le+ r)le is *ha* *he charac*er o8 employmen* is +e*ermine+ no* by s*ip)la*ions in *he con*rac*, b)* by *he na*)re o8 *he work per8orme+ 3*herwise, no employee can become re-)lar by *he simple e(pe+ien* o8 incorpora*in- *his con+i*ion in *he con*rac* o8 employmen*

Labor Law 1
W 3omares v (23C> A260 was emplace+ in o)r s*a*)*e books *o pre,en* *he circ)m,en*ion o8 *he employee2s ri-h* *o be sec)re in his *en)re by in+iscrimina*ely an+ comple*ely r)lin- o)* all wri**en an+ oral a-reemen*s inconsis*en* wi*h *he concep* o8 re-)lar employmen* +e8ine+ *herein 1here an employee has been en-a-e+ *o per8orm ac*i,i*ies which are )s)ally necessary or +esirable in *he )s)al b)siness o8 *he employer, s)ch employee is +eeme+ a re-)lar employee an+ is en*i*le+ *o sec)ri*y o8 *en)re no*wi*hs*an+in- *he con*rary pro,isions o8 his con*rac* o8 employmen* 3 &$: - /he noble ob<ec*i,es o8 "a-na Car*a 8or Disable+ Persons are no* base+ merely on chari*y or accommo+a*ion, b)* on <)s*ice an+ *he e=)al *rea*men* o8 qualified persons, +isable+ or no* /he Co)r* belie,es, *ha*, a8*er showin- *heir 8i*ness 8or *he work assi-ne+ *o *hem, *hey sho)l+ be *rea*e+ an+ -ran*e+ *he same ri-h*s like any o*her re-)lar employees Disposition Pe*i*ion is hereby 0%A;/$D /he 5)ne 20, 199H Decision an+ *he A)-)s* A, 199H %esol)*ion o8 *he ;L%C are %$K$%:$D an+ :$/ A:ID$ %espon+en* Far $as* #ank an+ /r)s* Company is hereby 3%D$%$D *o pay back wa-es an+ separa*ion pay *o each o8 *he 8ollowin- *wen*y-se,en !2I' pe*i*ioners

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services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made #nown by the employer to the employee at the time of his engagement! 8n employee who is allowed to wor# after a probationary period shall be considered a regular employee! ISSUES 1 13; pe*i*ioner was allowe+ *o work beyon+ his proba*ionary perio+, an+ was *here8ore alrea+y a re-)lar employee a* *he *ime o8 his +ismissal 2 13; "i++leby in8orme+ pe*i*ioner o8 s*an+ar+s 8or re-)lari4a*ion a* *he s*ar* o8 his employmen* 3 13; Alcira was ille-ally +ismisse+ when "i++leby op*e+ no* *o renew his con*rac* on *he las* +ay o8 *he proba*ionary perio+ HELD 1 ;3 Ratio Comp)*a*ion o8 *he 7-mon*h proba*ionary perio+ is reckone+ 8rom *he +a*e o8 appoin*men* )p *o *he same calen+ar +a*e o8 *he 7*h mon*h 8ollowin-, *h)s +ismissal on ;o,ember 20, 1997 was well wi*hin *he proba*ionary perio+ Reasoning - *he comp)*a*ion o8 Alcira !)sin- 30 +ays ( 7 mon*hs X 160 +ays' is wron- As hel+ in C82S Poultry Supply Corp v 3oco> !3')r comp)*a*ion o8 *he 7-mon*h proba*ionary perio+ is reckone+ 8rom *he +a*e o8 appoin*men* )p *o *he same calen+ar +a*e o8 *he 7*h mon*h 8ollowin- In shor*, since *he n)mber o8 +ays in each par*ic)lar mon*h was irrele,an*, Alcira was s*ill a proba*ionary employee when "i++leby op*e+ no* *o 9re-)lari4e9 him on ;o,ember 20, 1997 2 &$: Ratio An employer is +eeme+ *o s)bs*an*ially comply wi*h *he r)le on no*i8ica*ion o8 s*an+ar+s i8 he apprises *he employee *ha* he will be s)b<ec*e+ *o a per8ormance e,al)a*ion on a par*ic)lar +a*e a8*er his hirinReasoning - "i++leby s)bs*an*ially no*i8ie+ *he pe*i*ioner o8 *he s*an+ar+s o8 a re-)lar employee when i* apprise+ him, a* *he s*ar* o8 his employmen*, *ha* i* wo)l+ e,al)a*e his s)per,isory skills a8*er H mon*hs - /ha* *he appoin*men* paper con*aine+ *he remark *ha* Alcira wo)l+ be s)b<ec*e+ *o a per8ormance e,al)a*ion is eno)-h no*ice *ha* *he proba*ionary basis o8 his employmen* was con+i*ional !con+i*ione+ )pon his mee*in- o8 per8ormance s*an+ar+s' 3 ;3 Ratio Al*ho)-h proba*ionary employees are also accor+e+ sec)ri*y o8 *en)re, *his pro*ec*ion en+s )pon e(pira*ion o8 *he proba*ionary perio+ Reasoning - I* is se**le+ *ha* e,en i8 proba*ionary employees +o no* en<oy permanen* s*a*)s, *hey are accor+e+ *he cons*i*)*ional pro*ec*ion o8 sec)ri*y o8 *en)re /his means *hey may only be *ermina*e+ 8or <)s* ca)se or when *hey o*herwise 8ail *o =)ali8y as re-)lar employees in accor+ance wi*h reasonable s*an+ar+s ma+e known *o *hem by *he employer a* *he *ime o8 *heir en-a-emen* - #)* we ha,e also r)le+ in anlimos, et! al! vs! (ational 2abor 3elations Commission *ha* *his cons*i*)*ional pro*ec*ion en+s on *he e(pira*ion o8 *he proba*ionary perio+ 3n *ha* +a*e, *he par*ies are 8ree *o ei*her renew or *ermina*e *heir con*rac* o8 employmen* In *his case, "i++leby e(ercise+ i*s op*ion no* *o renew *he con*rac* when i* in8orme+ Alcira on *he las* +ay o8 his proba*ionary employmen* *ha* i* +i+ no* in*en+ *o -ran* him a re-)lar s*a*)s Disposition Pe*i*ion D$;I$D

MITSUBISHI MOTORS CORP V CHRYSLER PHIL LABOR UNION [PAGE 102] ALCIRA V NLRC (MIDDLEBY PHILS"THOMAS, PENA, MAMARADLO) 401 SCRA 508 CORONA; 5 7' 9, 2004
NATURE Appeal 8rom +ecision o8 CA !+ismissin- complain* 8or ille-al +ismissal' FACTS - Alcira was hire+ by "i++leby as an en-ineerin- s)ppor* ser,ices s)per,isor on a proba*ionary basis 8or 7 mon*hs Apparen*ly )nhappy wi*h AlciraEs per8ormance, *he company *ermina*e+ AlciraEs ser,ices /he iss)e arises on whe*her *he *ermina*ion occ)rre+ be8ore or a8*er *he 7-mon*h proba*ionary perio+ - Alcira> he was hire+ on "ay 20, 1997 - "i++leby> Alcira was hire+ "ay 2I, 1997 - /he appoin*men* paper in+ica*e+ *ha* *he s*a*)s was Bproba*ionary !7mos'D an+ a remark *ha* Ba8*er H mos, per8ormance shall be e,al)a*e+ an+ any a+<)s*men* shall +epen+ on work per8ormanceD - 3n ;o,ember 20, 1997, Alcira was no* allowe+ *o work !alle-e+ly by wi*hhol+in- o8 his *ime car+ by a senior o88icer' - Alcira 8ile+ a complain* wi*h *he Labor Arbi*er, con*en+in- *ha* he was alrea+y a re-)lar employee as o8 *he +a*e he was +ismisse+ !he comp)*e+ *he 7mos proba*ionary perio+ as 30+ays ( 7 mos X 160 +ays, *h)s comin- *o *he concl)sion *ha* *he perio+ en+e+ on *he 160*h +ay a8*er *he +ay o8 employmen*' - /he company !an+ i*s o88icers, herein pri,a*e respon+en*s' presen*e+ e,i+ence *ha* showe+ AlciraEs poor per8ormance, *ar+iness, absences, an+ ,iola*ions o8 company r)les on wearin- o8 )ni8orm +)rin- *he proba*ionary perio+, an+ sai+ *ha* since he 8aile+ *o mee* *he s*an+ar+s, AlciraEs applica*ion *o become a re-)lar employee was +enie+ LA, ;L%C, an+ CA all r)le+ in 8a,or o8 *he company, )phol+in*he ,ali+i*y o8 *he +ismissal - Cen*ral *o *he ma**er a* han+ is ar* 261 o8 Labor Co+e> 83/! )H,! P39=8/'9(83A > P29A >(/! Probationary employment shall not e&ceed si& BCD months from the date the employee started wor#ing, unless it is covered by an apprenticeship agreement stipulating a longer period! /he

CRITERIA RE1ULARI6ATION

Labor Law 1
ALCIRA V NLRC (MIDDLEBY PHILS"THOMAS, PENA, MAMARADLO) [PAGE105]

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E5TENSION OF CONTRACT
MARIWASA V LEOGARDO 169 SCRA 465 NAR%ASA; 5a7 a)y 26, 1989
NATURE Cer*iorari FACTS - De=)ila was hire+ on proba*ion by "ariwasa as a -eneral )*ili*y worker on 5an 10, 19I9 A8*er *he proba*ionary perio+ o8 si( mon*hs, "Ariwasa in8orme+ him *ha* his work ha+ pro,e+ )nsa*is8ac*ory an+ ha+ 8aile+ *o mee* *he re=)ire+ s*an+ar+s an+ *o -i,e him a chance *o impro,e his per8ormance an+ =)ali8y 8or re-)lar employmen*, ins*ea+ o8 +ispensin- wi*h his ser,ice *hen an+ *here, wi*h his wri**en consen* "ariwasa e(*en+e+ his proba*ion perio+ 8or ano*her *hree mon*hs 8rom 5)ly 10 *o 3c*ober 9, 19I9 Gis per8ormance, howe,er, +i+ no* impro,e an+ on *ha* acco)n* "ariwasa *ermina*e+ his employmen* a* *he en+ o8 *he e(*en+e+ perio+ ISSUE 13; employer an+ employee may by a-reemen* e(*en+ *he proba*ionary perio+ o8 employmen* beyon+ *he si( mon*hs prescribe+ in A262 LC HELD &$: - An e(*ension o8 *he proba*ionary perio+ o8 employmen* may law8)lly be co,enan*e+, no*wi*hs*an+in- *he seemin-ly res*ric*i,e lan-)a-e o8 Ar*icle 262 Reasoning $ =uiser vs! 2eogardo, @r reco-ni4e+ a-reemen*s s*ip)la*inlon-er proba*ionary perio+s as cons*i*)*in- law8)l e(cep*ions *o *he s*a*)*ory prescrip*ion limi*in- s)ch perio+s *o si( mon*hs, when i* )phel+ as ,ali+ an employmen* con*rac* be*ween an employer an+ *wo o8 i*s employees *ha* pro,i+e+ 8or an ei-*h*een-mon*h proba*ion perio+ /his Co)r* *here hel+> - 0enerally, *he proba*ionary perio+ o8 employmen* is limi*e+ *o si( !7' mon*hs /he e(cep*ion *o *his -eneral r)le is when *he par*ies *o an employmen* con*rac* may a-ree o*herwise, s)ch as when *he same is es*ablishe+ by company policy or when *he same is re=)ire+ by *he na*)re o8 work *o be per8orme+ by *he employee In *he la**er case, *here is reco-ni*ion o8 *he e(ercise o8 mana-erial prero-a*i,es in re=)irin- a lon-er perio+ o8 proba*ionary employmen* (((((( especially where *he employee m)s* learn a par*ic)lar kin+ o8 work s)ch as sellin-, or when *he <ob re=)ires cer*ain =)ali8ica*ions, skills e(perience or *rainin- In *his case *he inabili*y o8 *he proba*ioner *o make *he -ra+e became apparen* only a* or abo)* *he en+ o8 *he si(-mon*h perio+, hence an e(*ension co)l+ no* ha,e been pre-arran-e+ as was +one in #)iser ass)mes no a+,erse si-ni8icance, -i,en *he lack, o8 any in+ica*ion *ha* *he e(*ension *o which De=)ila -a,e his a-reemen* was a mere s*ra*a-em o8 pe*i*ioners *o a,oi+ *he le-al conse=)ences o8 a proba*ionary perio+ sa*is8ac*orily comple*e+ For *he e(*ension o8 De=)ila2s proba*ion was e( -ra*ia, an ac* o8 liberali*y on *he par* o8 his employer a88or+in- him a secon+ chance *o make -oo+ a8*er ha,in- ini*ially 8aile+ *o pro,e his wor*h as an employee :)ch an ac* canno* now )n<)s*ly be *)rne+ a-ains* sai+ employer2s acco)n* *o compel i* *o keep on i*s payroll one who co)l+ no*

per8orm accor+in- *o i*s work s*an+ar+s /he law, s)rely, was ne,er mean* *o pro+)ce s)ch an ine=)i*able res)l* - #y ,ol)n*arily a-reein- *o an e(*ension o8 *he proba*ionary perio+, De=)ila in e88ec* wai,e+ any bene8i* a**achin- *o *he comple*ion o8 sai+ perio+ i8 he s*ill 8aile+ *o make *he -ra+e +)rin- *he perio+ o8 e(*ension /he Co)r* 8in+s no*hin- in *he law which by any 8air in*erpre*a*ion prohibi*s s)ch a wai,er An+ no p)blic policy pro*ec*in- *he employee an+ *he sec)ri*y o8 his *en)re is ser,e+ by prescribin- ,ol)n*ary a-reemen*s which, by reasonably e(*en+in- *he perio+ o8 proba*ion, ac*)ally impro,e an+ 8)r*her a proba*ionary employee2s prospec*s o8 +emons*ra*in- his 8i*ness 8or re-)lar employmen*

A!SOR!ED EMPLOYEES
CEBU STEVEDORING CO INC V REGIONAL DIRECTOR 168 SCRA 015 REGALADO; D'1'3(') 8, 1988
FACTS - Complainan*s 0eli- an+ Y)i<ano !C3"PLAI;A;/:' were 8ormer employees o8 *he Ceb) C)s*oms Arras*re :er,ice !CCA:' P)rs)an* *o an A+minis*ra*i,e 3r+er by *he #)rea) o8 C)s*oms, CCA: was abolishe+ 98or *he reason *ha* *he ob<ec*i,es 8or which i* was crea*e+ ha+ alrea+y been a**aine+9 Conse=)en*ly, all *he employees o8 CCA:, incl)+in- C3"PLAI;A;/:, were -i,en *heir *ermina*ion separa*ion pay by *he #)rea) - A8*er *he aboli*ion, all *he employees o8 CCA:, incl)+inC3"PLAI;A;/:, were absorbe+ by C:CI wi*h *he same posi*ions *ha* *hey hel+ in *he CCA: Almos* 7 mon*hs la*er, howe,er, C3"PLAI;A;/: were +ismisse+ by C:CI wi*ho)* prior clearance C3"PLAI;A;/: conse=)en*ly 8ile+ an ac*ion 8or reins*a*emen* wi*h backwa-es wi*h *he Labor %e-ional 388ice /he %e-ional Direc*or r)le+ in C3"PLAI;A;/:E 8a,or, which r)lin- was a88irme+ on appeal by *he *hen "inis*ry o8 Labor an+, s)bse=)en*ly, by *he 388ice o8 *he Presi+en* ISSUES .. 13; *he C:CI was +enie+ +)e process +)e *o *he lack o8 hearin- be8ore *he %e-ional Direc*or an+ C3"PLAI;A;/:E 8ail)re *o 8ile *heir respec*i,e posi*ion papers 2 13; *he C3"PLAI;A;/: were merely cas)als an+ co)l+, *here8ore, be *ermina*e+ e,en wi*ho)* prior clearance 8rom *he *hen "inis*ry o8 Labor an+ wi*ho)* en*i*lemen* *o separa*ion pay 3 13; *he posi*ions occ)pie+ by C3"PLAI;A;/: wi*h CCA: are i+en*ical wi*h *he posi*ions alrea+y 8ille+ )p an+ bein+ischar-e+ in *he main o88ice o8 C:CI, C3"PLAI;A;/: may be *ermina*e+ 8or re+)n+ancy HELD 1 ;3 - /he ri-h* *o be hear+, as a preliminary s*ep essen*ial *o *he ren+i*ion o8 an en8orceable <)+-men*, cons*i*)*es a basic elemen* o8 *he cons*i*)*ional re=)iremen* o8 +)e process o8 law Gowe,er, while C:CI was no* a88or+e+ an oppor*)ni*y *o be hear+ by oral ar-)men* on i*s posi*ion paper +)e *o i*s absence a* *he sche+)le+ hearin-, i* is likewise *r)e *ha* i* was re=)ire+ *o, as in 8ac* i* ac*)ally +i+, s)bmi* a posi*ion paper which, *o-e*her wi*h *he e,i+ence presen*e+ +)rin- *he hearin-,

Labor Law 1
became *he basis o8 *he =)es*ione+ or+er o8 *he %e-ional Direc*or From *his or+er, C:CI appeale+ *o *he Labor "inis*er, an+ *hen *o *he 388ice o8 *he Presi+en* I* is, *here8ore, apparen* *ha* C:CI was no* +enie+ a+e=)a*e reme+ies 8rom *he alle-e+ proce+)ral in8irmi*ies s)rro)n+in- *he %e-ional Direc*or2s or+er /he en*ire recor+ o8 *he case was re,iewe+ an+ +)ly consi+ere+ on appeal, which appella*e procee+in- reme+ie+ any ina+e=)acy in *he proce+)ral +)e process wi*h which *he *rial procee+in-s are bein- 8a)l*e+ 2 ;3 - 1e a-ree wi*h *he %e-ional Direc*or *ha* C3"PLAI;A;/: co)l+ no* be consi+ere+ proba*ionary employees beca)se *hey were alrea+y well-*raine+ in *heir respec*i,e 8)nc*ions 1hile C3"PLAI;A;/: were s*ill wi*h *he CCA: *hey were alrea+y clerks wi*h 10 years o8 ser,ice, on *he a,era-e /hey were, *here8ore, e(perience+ workers Fin+in-s o8 =)asi-<)+icial a-encies !like *he Labor %e-ional 388ice' which ha,e ac=)ire+ e(per*ise beca)se *heir <)ris+ic*ion is con8ine+ *o speci8ic ma**ers are -enerally accor+e+ no* only respec* b)*, a* *imes, e,en 8inali*y where s)ch 8in+in-s are s)ppor*e+ by s)bs*an*ial e,i+ence 3 ;3 - Despi*e Ar* 263Es pro,ision on *ermina*ion o8 employmen* +)e *o re+)n+ancy an+ re*renchmen*, recor+s 8ail *o es*ablish clearly *ha* *he posi*ions occ)pie+ by C3"PLAI;A;/: are i+en*ical wi*h *hose presen*ly e(is*in- in C:CI2s o88ice C:CI also kep* C3"PLAI;A;/: in i*s employ 8or almos* 7 mon*hs wi*ho)* raisin- *his iss)e C:CI +oes no* men*ion which posi*ions are alle-e+ly +)plica*e+ by *he posi*ions hel+ by C3"PLAI;A;/: C:CI +oes no* e,en e(plain why C3"PLAI;A;/: sho)l+ be *he ones *o be *ermina*e+, wi*ho)* re-ar+ *o *he compara*i,e len-*hs o8 ser,ice, =)ali8ica*ions an+ per8ormance o8 all employees concerne+ - C:CIEs claim o8 8inancial losses is )n*enable since i* appears *ha* i* absorbe+ an+ employe+ 8or almos* 7 mon*hs, wi*ho)* any in*ima*ion o8 s)ppose+ 8inancial +is*ress, *he ma<ori*y o8 *he 8ormer employees o8 CCA: I* ne,er a+,ise+ C3"PLAI;A;/: o8 a company re*renchmen* pro-ram@ *he 8irs* *ime *his s)ppose+ pro-ram was men*ione+ was when C:CI was *ryin- *o <)s*i8y *he +ismissal o8 C3"PLAI;A;/: be8ore *he labor arbi*er C:CI presen*e+ a :*a*emen* o8 3pera*ions, which, howe,er, remains an )ncorrobora*e+ an+ sel8-ser,in- piece o8 e,i+ence Disposition Pe*i*ion DI:"I::$D C3"PLAI;A;/: or+ere+ reins*a*e+ wi*h backwa-es In *he e,en* reins*a*emen* becomes impossible, C3"PLAI;A;/: *o be -i,en 1-mon*h-salary wor*h o8 separa*ion pay

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alle-e+ly 8or wi*hhol+in- *a(, an+ *he salary he was recei,inwas only P2,16I 00 a mon*h, which was way below *he P2,A10 1I s*ip)la*e+ in *he PADPA3 memoran+)m o8 a-reemen* - Pe i i!%e# alle-e+ *ha* *he pri,a*e respon+en* was hire+ on 5an)ary 30, 1966, on a proba*ionary basis, an+ he si-ne+ an a)*hori*y *o +e+)c* 8rom his salary any reimb)rsemen* 8or any loss or +ama-e ca)se+ *o proper*ies o8 *he clien*@ *ha* he was -i,en a copy o8 pe*i*ionerEs r)les an+ re-)la*ions which pro,i+e *ha* sleepin- on pos* is p)nishable by warnin-, s)spension an+ +ismissal an+ he was ca)-h* sleepin- on pos* on "arch 1I, 1966, 8or which he was sen* a memoran+)m -i,in- him a las* warnin-@ *ha* on "arch 2H, 1966, he 8i-)re+ in a =)arrel wi*h ano*her sec)ri*y -)ar+, which res)l*e+ in a near shoo*o)*@ *ha* a* *he en+ o8 his proba*ionary employmen*, he was -i,en a psycholo-ical *es* an+ on *he basis o8 *he 8ore-oin-, pe*i*ioner *ol+ him *ha* his proba*ionary employmen* ha+ come *o an en+ as he +i+ no* pass *he company s*an+ar+ an+ *here8ore, he co)l+ no* be hire+ as a re-)lar employee - LA 0)anio han+e+ +own a +ecision in 8a,or o8 complainan* /he respon+en* was or+ere+ *o reins*a*e *he complainan* *o his 8ormer posi*ion an+ accor+ *o him *he s*a*)s o8 a re-)lar employee, an+ *o re8)n+ *o *he complainan* *he +e+)c*ion i* ha+ ma+e 8rom his salary in *he amo)n* o8 P20 00 per mon*h /he claim o8 *he complainan* 8or )n+erpaymen* o8 wa-es is +ismisse+ 8or lack o8 meri* - ;L%C a88irme+ *he +ecision wi*h a sli-h* mo+i8ica*ion> *he re8)n+ o8 *he +e+)c*ions ma+e by respon+en* 8rom complainan*Es salaries in *he amo)n* o8 P20 00 per mon*h was ,aca*e+ an+ se* asi+e ISSUES 1 13; pri,a*e respon+en*Es employmen* wi*h AE Prime :ec)ri*y :er,ices, Inc was <)s* a con*in)a*ion o8 his employmen* wi*h :)-arlan+ :ec)ri*y :er,ices, Inc 2 13; pri,a*e respon+en* is a re-)lar employee o8 pe*i*ioner 3 13; pri,a*e respon+en*Es +ismissal is ille-al HELD 1 &$: Ratio /he Co)r* canno* sanc*ion *he prac*ice o8 some companies which, shor*ly a8*er a worker has become a re-)lar employee, e88ec*s *he *rans8er o8 *he same employee *o ano*her en*i*y whose owners are *he same, or i+en*ical, in or+er *o +epri,e s)b<ec* employee o8 *he bene8i*s an+ pro*ec*ion he is en*i*le+ *o )n+er *he law Reasoning - /he alle-a*ions o8 *he pri,a*e respon+en* *ha* :)-arlan+ is a sis*er company o8 AE Prime an+ *ha* *he la**er absorbe+ *he sec)ri*y con*rac*s an+ sec)ri*y -)ar+s o8 :)-arlan+ wi*h *he . : $mbassy were nei*her +enie+ nor con*ro,er*e+ by *he pe*i*ioner be8ore *he Labor Arbi*er - Pe*i*ionerEs 8ail)re *o +eny *ha* :)-arlan+ is i*s sis*er company an+ *ha* pe*i*ioner absorbe+ :)-arlan+Es sec)ri*y con*rac* an+ sec)ri*y personnel ass)mes o,erri+in- si-ni8icance o,er *he resi-na*ion *heori4e+ )pon, e,incin- pe*i*ionerEs +esi-n *o i-nore or ,iola*e labor laws *hro)-h *he )se o8 *he ,eil o8 corpora*e personali*y 2 &$: Ratio /he complainan* became a re-)lar employee )pon comple*ion o8 his si(-mon*h perio+ o8 proba*ion Pri,a*e respon+en* s*ar*e+ workin- on 5an)ary 30, 1966 an+ comple*e+ *he sai+ perio+ o8 proba*ion on 5)ly 2I, 1966 /h)s, a* *he *ime pri,a*e respon+en* was +ismisse+ on A)-)s* 1, 1966, he was alrea+y a re-)lar employee wi*h a sec)ri*y o8 *en)re Ge co)l+ only be +ismisse+ 8or a <)s* an+ a)*hori4e+ ca)se - /here is no basis 8or s)b<ec*in- pri,a*e respon+en* *o a new proba*ionary or *emporary employmen* on 5an)ary 30, 1966, consi+erin- *ha* he was alrea+y a re-)lar employee when he was absorbe+ by AE Prime 8rom :)-arlan+, i*s sis*er company 3 &$: Ratio /he +ismissal o8 complainan*, a re-)lar employee, was sans any <)s*, le-al an+ ,ali+ basis 1ha* is more, he was no*

DOU!LE PRO!ATION
A# PRIME SECURITY SERVICES INC V NLRC (GUANIO, MORENO) 022 SCRA 280 PURISIMA; 5a7 a)y 19, 2000
NATURE A special ci,il ac*ion 8or cer*iorari seeks *o ann)l *he +ecision o8 *he ;L%C FACTS - /he &!+"lai% alle-e+, amon- o*hers, *ha* complainan* !3*hello C "oreno' ha+ been workin- as a sec)ri*y -)ar+ 8or a year wi*h *he :)-arlan+ :ec)ri*y :er,ices, Inc , a sis*er company o8 pe*i*ioner@ *ha* he was rehire+ as a sec)ri*y -)ar+ on 5an)ary 30, 1966 by *he pe*i*ioner an+ assi-ne+ *o *he same pos* a* *he . : $mbassy #)il+in-@ *ha* he was amon- *hose absorbe+ by *he pe*i*ioner when i* *ook o,er *he sec)ri*y con*rac*s o8 i*s sis*er company wi*h *he . : $mbassy@ *ha* he was 8orce+ by pe*i*ioner *o si-n new proba*ionary con*rac*s o8 employmen* 8or 7 mon*hs@ *ha* on A)-)s* 1, 1966, his employmen* was *ermina*e+@ *ha* +)rin- his employmen*, *he amo)n* o8 P20 00 per mon*h was +e+)c*e+ 8rom his salary

Labor Law 1
-i,en a chance *o con*es* his +ismissal Ge was +epri,e+ o8 an oppor*)ni*y *o be hear+ Reasoning - /he +ismissal o8 pri,a*e respon+en* was pres)mably base+ on *he res)l*s o8 his beha,ioral an+ ne)ropsycholo-ical *es*s an+ on his ,iola*ion o8 a company r)le on sleepin- on pos* - 1i*h respec* *o *he beha,ioral an+ ne)ropsycholo-ical *es*s, *he Co)r* a-rees wi*h ;L%CEs assessmen*> 9Complainan*Es res)l* o8 his beha,ioral research an+ ne)ropsycholo-ical *es* *o o)r min+, is o8 no momen*, consi+erin- *ha* *he sai+ *es* appeare+ *o ha,e been con,enien*ly con*ri,e+ *o be con+)c*e+, an+ *he res)l* pro+)ce+ on *he ,ery +ay o8 his +ismissal, in =)es*ion - :o also, pri,a*e respon+en*Es alle-e+ ,iola*ions o8 sleepin- on pos*, an+ =)arrellin- wi*h a co-worker, may no* be proper -ro)n+s 8or +ismissal, as *he same were 8irs* in8rac*ions Circ)lar ;o I o8 AE Prime, -o,ernin- +iscipline, s)spension an+ separa*ion 8rom *he ser,ice o8 sec)ri*y -)ar+s, pro,i+es> 9:$C/I3; KIII - :L$$PI;0 3; P3:/ 1s* 388ense - 1arnin2n+ 388ense - 30 +ays s)spension wi*ho)* pay 3r+ 388ense - Dismissal :$C/I3; IL - CGALL$;0I;0 A P3:/$D :$C.%I/&?LAD& 0.A%D A;D :.P$%I3%: 1s* 388ense - 3ne !1' mon*h s)spension 2n+ 388ense T Dismissal - As *he in8rac*ions o8 :ec*ions KIII an+ IL o8 Circ)lar ;o 1 by pri,a*e respon+en* were 8irs* o88enses, *hey were no* p)nishable by +ismissal /hey were no* ,ali+ -ro)n+s 8or *ermina*in- *he employmen* o8 pri,a*e respon+en* Disposition pe*i*ion is DI:"I::$D

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s)b<ec* ma**er, con*en*, concep*s, skills ac*i,i*ies U e,al)a*ion, +e la PeZa 8aile+ *o comply - 11 years la*er, or on Dec 2, 1991, respon+en* applie+ *o *he LCC a-ain, 8or *he posi*ions o8 CA/ Comman+er Ge was appoin*e+ ins*ea+ as classroom *eacher in P $ an+ heal*h /he wri**en con*rac* o8 employmen* be*ween LCC U respon+en* e(pressly pro,i+e+ *ha* *he employmen* was 8or 1 aca+emic year, 8rom 5)ne 19992 - "arch 1993, U *he same was accep*e+ by respon+en* - 5)ly 1992> A remin+er was sen* *o respon+en* by *he aca+emic e,al)a*ion *eam re-ar+in- *he schoolEs s*an+ar+ proce+)res> *imely s)bmission o8 lesson plans, class recor+s U a**en+ance a* re-)lar mee*in-s which respon+en* +e8ie+ U con*in)e+ *o i-nore e,en a8*er ha,in- been remin+e+ In an emer-ency mee*in- o8 8ac)l*y members, respon+en* bera*e+ one #ayo-)in-, a member o8 *he aca+emic e,al)a*ion *eam U *hrea*ene+ him wi*h bo+ily harm, al*ho)-h no )n*owar+ inci+en* ens)e+ - As his con*rac* was only 8or one aca+emic school year, +e la PeZa applie+ 8or reins*a*emen* in Feb 1993 b)* *he same was +enie+ by *he aca+emic *eam beca)se o8 his )nsa*is8ac*ory per8ormance 1 %espon+en* *hen 8ile+ a complain* in *he %e-ional Arbi*ra*ion #acolo+ #ranch 8or ille-al +ismissal a-ains* LCC U members o8 *he aca+emic *eam /he Labor Arbi*er !LA' +ismisse+ *his complain* 3n appeal, *he ;L%C re,erse+ *he LAEs +ecision an+ hel+ *ha* respon+en* a**aine+ re-)lar s*a*)s a* *he *ime he was +ismisse+ U *ha* LCC 8aile+ *o pro,e <)s* ca)se 8or his +ismissal Pe*i*ioner LCC *hen 8ile+ a "F% *o *he ;L%C which was +enie+, hence *his pe*i*ion ISSUE 13; +e la PeZa was a permanen* employee o8 LCC HELD ;3 Ge +i+ no* a**ain permanen* s*a*)s Ratio In resol,in- iss)es re-ar+in- sec)ri*y o8 *en)re o8 pri,a*e school *eachers, i* is *he "an)al o8 %e-)la*ions 8or Pri,a*e :chools, no* *he Labor Co+e, which is applicable Reasoning - For a pri,a*e school *eacher *o ac=)ire permanen* s*a*)s in employmen* *he 8ollowin- m)s* conc)r> !1' /he *eacher is a 8)ll*ime *eacher@ !2' /he *eacher m)s* ha,e ren+ere+ 3 consec)*i,e yrs o8 ser,ice@ !3' :)ch ser,ice m)s* ha,e been sa*is8ac*ory - /he wri**en con*rac* o8 respon+en* s*a*e+ *ha* he shall be employe+ by *he LCC 8or *he school year 5)ne 1992 - "arch 1993, a 8i(e+ *erm o8 10 mos Clearly, *he employmen* was no* permanen* b)* 8or a speci8ie+ +)ra*ion o8 one school year %espon+en* was a new hire ha,in- pre,io)sly resi-ne+ U ne,er +enie+ *he 8ac* *ha* he 8aile+ *o comply wi*h *he re=)iremen*s o8 *he school Disposition Pe*i*ion -ran*e+, ;L%C +ecision re,erse+ an+ se* asi+e

TERMINATION AND SALARY

INTERNATIONAL CATHOLIC MIGRATION COMMISSION V NLRC (GALANG) [PAGE 98] ORIENT E!PRESS PLACEMENT PHILIPPINES V NLRC (POEA, FLORES) [PAGE 102] DELA CRUZ V NLRC [PAGE 100]

RULE PRIVATE SC2OOL TEAC2ERS

CHIANG KAI SHEK COLLEGE V CA (NLRC, CALAYLAY, AQUINO, GACUTAN, BELO) [PAGE 40] LA CONSOLACION COLLEGE V NLRC 066 SCRA 226 PARDO; S'-#'3(') 28, 2001
NATURE Pe*i*ion 8or cer*iorari wi*h preliminary in<)nc*ion or res*raininor+er FACTS - %espon+en* 5ose +e la PeZa was ini*ially employe+ by La Consolacion Colle-e !LCC' as a CA/ Comman+an* 8or *he school year 19IH-19I7 U las*e+ )n*il :ep* 19I9, a8*er which he resi-ne+ Prior *o resi-na*ion U +espi*e +eman+s by LCC 8or him *o s)bmi* a syllabi in &D/ an+ CA/ con*ainin- co)rse ob<ec*i,es,

PART T3O LA/OR STANDARDS LA3

PURPOSE
MARIVELES SHIPYARD CORP V CA (REGONDOLA) 415 SCRA 5$0 QUISUMBING; N89'3(') 11, 2000
NATURE Pe*i*ion 8or re,iew on cer*iorari o8 *he +ecision o8 *he CA FACTS

Labor Law 1
- In 3c* 1993, "ari,eles :hipyar+ Corp en-a-e+ *he ser,ices o8 Lon-es* Force In,es*i-a*ion an+ :ec)ri*y A-ency, Inc *o ren+er sec)ri*y ser,ices a* *he 8ormerEs premises - Pe*i*ioner reli-io)sly complie+ wi*h *he *erms an+ con+i*ions o8 *he sec)ri*y con*rac* wi*h Lon-es* Force, promp*ly payin- i*s bills an+ con*rac* ra*es Gowe,er, i* 8o)n+ *he ser,ices beinren+ere+ by *he assi-ne+ -)ar+s )nsa*is8ac*ory an+ ina+e=)a*e, ca)sin- "ari,eles :hipyar+ Corp *o *ermina*e i*s con*rac* wi*h Lon-es* Force on April 199H Lon-es* Force, in *)rn, *ermina*e+ *he employmen* o8 *he sec)ri*y -)ar+s i* ha+ +eploye+ a* *he shipyar+ - Pri,a*e respon+en*s 8ile+ a case wi*h *he Labor Arbi*er Lon-es* Force, in *)rn, 8ile+ a cross-claim a-ains* "ari,eles :hipyar+ - Lon-es* 8orce a+mi**e+ *he 8ollowin-> W *ha* i* employe+ pri,a*e respon+en*s as sec)ri*y -)ar+s an+ assi-ne+ *hem *o work a* pe*i*ionerEs shipyar+, ren+erin12 ho)rs +)*y per shi8* W i* is liable as *o *he non-paymen* o8 *he alle-e+ wa-e +i88eren*ial, b)* passe+ liabili*y *o pe*i*ioner alle-in- *ha* *he ser,ice 8ee pai+ by "ari,eles was way below *he P;P:3:IA an+ PADPA3 ra*es - Pe*i*ioner +enie+ liabili*y on acco)n* o8 alle-e+ ille-al +ismissal, s*ressin- *ha* no employer-employee rela*ionship e(is*s be*ween i* an+ sec)ri*y -)ar+s - Labor Arbi*er +eclare+ "ari,eles an+ Lon-es* Force <oin*ly an+ se,erally liable *o pay *he money claims o8 pri,a*e respon+en*s, an+ or+ere+ *heir reins*a*emen* - ;L%C a88irme+ in toto *he +ecision o8 *he Labor Arbi*er CA +enie+ +)e co)rse *o pe*i*ionerEs appeal an+ +ismisse+ *he case ISSUE 13; pe*i*ioner "ari,eles sho)l+ be hel+ <oin*ly an+ se,erally liable wi*h Lon-es* Force 8or *he paymen* o8 wa-e +i88eren*ials an+ o,er*ime pay owin- *o pri,a*e respon+en*s HELD &$:, pe*i*ionerEs liabili*y is <oin* an+ se,eral *ha* o8 Lon-es* Force p)rs)an* *o Ar*icles 107, 10I an+ 109 o8 *he Labor Co+e A#t 789/ CONTRACTOR OR SU!CONTRACTOR T 1hene,er an employer en*ers in*o a con*rac* wi*h ano*her person in *he per8ormance o8 *he 8ormerEs work, *he employees o8 *he con*rac*or an+ o8 *he la**erEs s)bcon*rac*or, i8 any, shall be pai+ in accor+ance wi*h *he pro,isions o8 *his Co+e In *he e,en* *ha* *he con*rac*or or s)bcon*rac*or 8ails *o pay *he wa-es o8 his employees in accor+ance wi*h *his Co+e, *he employer shall be <oin*ly an+ se,erally liable wi*h *his con*rac*or or s)bcon*rac*or *o s)ch employees *o *he e(*en* o8 *he work per8orme+ )n+er *he con*rac*, in *he same manner an+ e(*en* *ha* he is liable *o employee +irec*ly employe+ by him A#t 78:/ INDIRECT EMPLOYER T /he pro,isions o8 *he imme+ia*ely prece+in- Ar*icle shall likewise apply *o any person, par*nership, associa*ion or corpora*ion which, no* bein- an employer, con*rac*s wi*h an in+epen+en* con*rac*or 8or *he per8ormance o8 any work, *ask, <ob or pro<ec* A#t 78;/ SOLIDARY LIA!ILITY T /he pro,isions o8 e(is*in- laws *o *he con*rary no*wi*hs*an+in-, e,ery employer or in+irec* employer shall be hel+ responsible wi*h his con*rac*or or s)bcon*rac*or 8or any ,iola*ion o8 any pro,ision o8 *his Co+e For p)rposes o8 +e*erminin*he e(*en* o8 *heir ci,il liabili*y )n+er *his Chap*er, *hey shall be consi+ere+ as +irec* employers - 1hen pe*i*ioner con*rac*e+ 8or sec)ri*y ser,ices wi*h Lon-es* Force, pe*i*ioner became an i%di#e& e+"l!,e# o8 pri,a*e respon+en*s 1hen *he a-ency as con*rac*or 8aile+ *o pay *he -)ar+s, *he corpora*ion as principal becomes <oin*ly an+ se,erally liable *o *he -)ar+sE wa-es /he sec)ri*y a-ency is hel+ liable by ,ir*)e o8 i*s s*a*)s as +irec* employer, while *he corpora*ion is +eeme+ *he in+irec* employer o8 *he -)ar+s 8or *he p)rpose o8 payin- *heir wa-es in *he e,en* o8 8ail)re o8 *he a-ency *o pay *hem /his s*a*)*ory scheme -i,es *he workers

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*he ample pro*ec*ion consonan* wi*h labor an+ social <)s*ice pro,isions o8 *he 196I Cons*i*)*ion - Labor s*an+ar+s are enac*e+ by *he le-isla*)re *o alle,ia*e *he pli-h* o8 workers whose wa-es barely mee* *he spiralin- cos*s o8 basic nee+s Labor laws are consi+ere+ wri**en in e,ery con*rac* :*ip)la*ions in ,iola*ion *hereo8 are consi+ere+ n)ll :imilarly, le-isla*e+ wa-e increases are +eeme+ amen+men*s *o *he con*rac* /h)s, employers canno* hi+e behin+ *heir con*rac*s in or+er *o e,a+e *heir !or *heir con*rac*orsE or s)bcon*rac*orsE' liabili*y 8or noncompliance wi*h *he s*a*)*ory minim)m wa-e - Gowe,er, *he soli+ary liabili*y o8 pe*i*ioner wi*h *ha* o8 Lon-es* Force +oes no* precl)+e *he applica*ion o8 *he Ci,il Co+e pro,isions on *he ri-h* o8 reimb)rsemen* 8rom his co-+eb*or by *he one who pai+ Disposition Decision o8 Appella*e Co)r* a88irme+ Pe*i*ioner an+ Lon-es* Force are hel+ liable <oin*ly an+ se,erally 8or )n+erpaymen* o8 wa-es an+ o,er*ime pay o8 *he sec)ri*y -)ar+s, wi*ho)* pre<)+ice *o pe*i*ionerEs ri-h* o8 reimb)rsemen* 8rom Lon-es* Force In,es*i-a*ion an+ :ec)ri*y A-ency, Inc

SECTION POLICY

EMPLOYMENT

SECTION < RECRUITMENT AND PLACEMENT OF WORKERS 6.0. RECRUITMENT AND PLACEMENT OF 3OR7ERS DEFINITION
DEFINITION = LAW STRUCTURE
PEOPLE V PANIS 142 SCRA 664 CRU,; 5 /y 11, 1986
NATURE APP$AL by cer*iorari *o re,iew *he or+ers o8 *he CFI Oambales an+ 3lon-apo, by 5)+-e Panis FACTS - :erapio Ab)- was char-e+ w? ille-al recr)i*men* 8or opera*ina pri,a*e 8ee-char-in- employmen* a-ency by char-in- 8ees an+ e(penses an+ promisin- employmen* in :a)+i Arabia *o 8o)r separa*e in+i,i+)als w?o a license - Ab)- 8ile+ a mo*ion *o =)ash on *he -ro)n+ *ha* *he in8orma*ions +i+ no* char-e an o88ense beca)se he was acc)se+ o8 ille-ally recr)i*in- only !%e person in each o8 *he 8o)r in8orma*ions .n+er *he pro,iso in Ar*icle 13!b', he claime+, *here wo)l+ be ille-al recr)i*men* only 9whene,er 8! !# +!#e persons are in any manner promise+ or o88ere+ any employmen* 8or a 8ee 9 /he mo*ion was -ran*e+ by *he *rial co)r* - P#i$ate #espon%ent> *o cons*i*)*e recr)i*men* an+ placemen*, all *he ac*s men*ione+ in Ar*icle 13!b' sho)l+ in,ol,e +ealin-s wi*h *wo or more persons as an in+ispensable re=)iremen* - Petitione# *he re=)iremen* o8 *wo or more persons is impose+ only where *he recr)i*men* an+ placemen* consis*s o8 an o88er or promise o8 employmen* *o s)ch persons an+ always in consi+era*ion o8 a 8ee /he o*her ac*s men*ione+ in *he bo+y

Labor Law 1
o8 *he ar*icle may in,ol,e e,en only one person an+ are no* necessarily 8or pro8i* ISSUE 1hich is *he correc* in*erpre*a*ion o8 Ar*icle 13!b' o8 P D AA2H HELD ;$I/G$% - /he n)mber o8 persons +eal* wi*h is no* an essen*ial in-re+ien* o8 *he ac* o8 recr)i*men* an+ placemen* o8 workers Any o8 *he ac*s men*ione+ in *he basic r)le in Ar*icle 13!b' will cons*i*)*e recr)i*men* an+ placemen* e,en i8 only one prospec*i,e worker is in,ol,e+ /he pro,iso merely lays +own a r)le o8 e,i+ence *ha* where a 8ee is collec*e+ in consi+era*ion o8 a promise or o88er o8 employmen* *o *wo or more prospec*i,e workers, *he in+i,i+)al or en*i*y +ealin- wi*h *hem shall be +eeme+ *o be en-a-e+ in *he ac* o8 recr)i*men* an+ placemen* - /he pro,iso was in*en+e+ nei*her *o impose a con+i*ion on *he basic r)le nor *o pro,i+e an e(cep*ion *here*o b)* merely *o crea*e a pres)mp*ion /he pres)mp*ion is *ha* *he in+i,i+)al or en*i*y is en-a-e+ in recr)i*men* an+ placemen* whene,er he or i* is +ealin- wi*h *wo or more persons *o whom, in consi+era*ion o8 a 8ee, an o88er or promise o8 employmen* is ma+e in *he co)rse o8 *he 9can,assin-, enlis*in-, con*rac*in-, *ranspor*in-, )*ili4in-, hirin- or proc)rin- !o8' workers 9

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W :a)lo in*erposes 8or his +e8ense a claim *ha* he was also applyin- 8or work abra+ *hro)-h Amelia +e la Cr)4 which le+ him *o mee* *he *hree complainan*s /hey were all *here *o 8ollow-)p *heir applica*ions an+ *ha* he was also +ecei,e+ by Amelia W Ge +enie+ bein- an o,erseas recr)i*er nor an a-en* 8or one Ge also +enies recei,in- *he abo,emen*ione+ amo)n*s 8rom complainan*s W Ge co)l+ no* ha,e commi**e+ *he crime beca)se *es*imony 8rom a P3$A employee showe+ *ha* licenses 8or recr)i*men* are iss)e+ only *o corpora*ions an+ no* *o na*)ral persons ISSUE 13; *he appeal o8 acc)se+ sho)l+ be -i,en meri* HELD ;3 Ratio %ecr)i*men* )n+er *he Labor Co+e re8ers *o Bany ac* o8 can,assin-, enlis*in-, con*rac*in-, *ranspor*in-, )*ili4in-, hirinor proc)rin- workers an+ incl)+es re8errals, con*rac* ser,ices, promisin- or a+,er*isin- 8or employmen* locally or abroa+, whe*her 8or pro8i* or no*@ Pro,i+e+, *ha* any person or en*i*y in which, in any manner, o88ers or promises 8or a 8ee employmen* *o *wo or more persons shall be +eeme+ en-a-e+ in recr)i*men* an+ placemen* D Reasoning - /he essen*ial elemen*s o8 ille-al recr)i*men* in lar-e scale are as 8ollows> !a' *he acc)se+ en-a-es in *he recr)i*men* an+ placemen* o8 workers as +e8ine+ )n+er Ar* 13!b' or in any o8 *he en)mera*e+ prohibi*ions in Ar* 31 o8 *he Labor Co+e !b' *he acc)se+ has no* complie+ wi*h *he -)i+elines iss)e+ by *he :ecre*ary o8 Labor an+ $mploymen*, par*ic)larly wi*h respec* *o *he sec)rin- o8 a license or an a)*hori*y *o recr)i* an+ +eploy workers whe*her locally or o,erseas !c' acc)se+ commi*s *he same a-ains* *hree more persons in+i,i+)ally or as a -ro)p - :a)lo pro8erre+ ina+e=)a*e e,i+ence *o pro,e his innocence $,en i8 :a)lo +i+ no* si-n all *he receip*s presen*e+ by *he complainan*s, i* +oes no* weaken *he case in any way A person char-e+ wi*h ille-al recr)i*men* may be con,ic*e+ on *he s*ren-*h o8 *he *es*imonies o8 *he complainan*s, i8 8o)n+ *o be cre+ible an+ con,incin- 3n *he ar-)men* *ha* licenses 8or recr)i*men* are iss)e+ only *o corpora*ions, *he Labor Co+e s*a*es *ha* Bany person or en*i*y which, in any manner, o88ers or promises 8or a 8ee employmen* *o *wo or more persons shall be +eeme+ en-a-e+ in recr)i*men* an+ placemen* D A nonlicensee or nonhol+er o8 a)*hori*y is a person, corpora*ion or en*i*y which has no* been iss)e+ a ,ali+ license or a)*hori*y *o en-a-e in recr)i*men* an+ placemen* by *he :ecre*ary o8 Labor or whose license or reco,ery has been s)spen+e+, re,oke+ or cancelle+ by *he P3$A A-en*s or represen*a*i,es appoin*e+ by a licensee or a hol+er o8 a)*hori*y b)* whose appoin*men*s were no* pre,io)sly reco-ni4e+ by *he P3$A 8all wi*hin *he +e8ini*ion s*a*e+ abo,e Disposition 5)+-men* a88irme+

PEOPLE V SAULO 044 SCRA 605 GON,AGA+RE4ES; N89'3(') 15, 2000

FACTS - %om)lo :a)lo, *o-e*her wi*h Amelia an+ Clo+)alo +e la Cr)4, were char-e+ wi*h ,iola*ion o8 A36 o8 *he Labor Co+e 8or ille-al recr)i*men* in lar-e scale - From April *o "ay 1990, *he *hree acc)se+ 8alsely represen*e+ *hemel,es *o ha,e *he capaci*y *o con*rac*, enlis* an+ recr)i* workers 8or employmen* abroa+ /hey promise+ <ob placemen*s *o "a)llon, "ali-aya an+ 5a,ier wi*ho)* 8irs* sec)rin- *he re=)ire+ license or a)*hori*y 8rom D3L$ In a++i*ion, *he *hree were also char-e+ wi*h *hree co)n*s o8 es*a8a - "ali-aya ha+ learne+ 8rom a rela*i,e o8 :a)lo *ha* *he la**er was recr)i*in- workers 8or /aiwan Ge, alon- wi*h "a)llon an+ 5a,ier, wen* *o ,isi* :a)lo in :a)loEs :an Francisco +el "on*e home :a)lo *ol+ "ali-aya *ha* she co)l+ lea,e 8or /aiwan as soon as she pai+ *he 8ees 8or *he processin- o8 +oc)men*s - :a)lo plea+e+ no* -)il*y *o *he char-es a-ains* him Amelia an+ Clo+)al+o s*ill remain a* lar-e :a)lo was e,en*)ally 8o)n+ -)il*y o8 *hree co)n*s o8 es*a8a an+ ille-al recr)i*men* - Petitione#s> C)ai( W "ali-aya pai+ P3H,000 e,i+ence+ by a receip* +a*e+ "ay 21, 1990 5a,ier was also *ol+ *o pay *he same amo)n* b)* she -a,e an ini*ial amo)n* o8 P20,000 :he +i+ no* ask 8or a receip* since she *r)s*e+ :a)lo "a)llo was *ol+ *o pay P30,000 as processin- 8ee 8or work in /aiwan "a)llon ma+e an ini*ial paymen* o8 PI,900 *o :a)loEs wi8e who iss)e+ him a receip* in *)rn "a)llon *hen ma+e an a++i*ional paymen* o8 P7,600 in *he presence o8 Amelia +e la Cr)4 an+ ano*her paymen* o8 P1H,I00 *o /)mali-, a 8rien+ o8 :a)lo, who also iss)e+ him ano*her receip* W In all *hree ins*ances, :a)lo 8aile+ *o +eli,er wha* he promise+ /he prosec)*ion also presen*e+ a cer*i8ica*ion +a*e+ 5)ly 27, 199A which s*a*e+ *ha* :a)lo was no* a)*hori4e+ by *he P3$A *o recr)i* workers 8or o,erseas employmen* - Respon%ents> Co((ents

6.06 EMPLOYMENT A2ENCY 6.05 ALLO3ED ENTITIES

A 0$;$%AL %.L$ # ALL31$D $;/I/I$:

2%ecr)i*men* an+ placemen*2 re8ers *o any ac* o8 can,assin-, enlis*in-, con*rac*in-, *ranspor*in-, hirin-, or proc)rin- workers, an+ incl)+es re8errals, con*rac* ser,ices, promisin- or a+,er*isin- 8or employmen*, locally or abroa+, whe*her 8or pro8i* or no*> Pro,i+e+, /ha* any person or en*i*y which, in any manner, o88ers or promises 8or a 8ee employmen* *o *wo or more persons shall be +eeme+ en-a-e+ in recr)i*men* an+ placemen* 9

6.04 PROHI/ITED ENTITY

Labor Law 1
6.05 TECHNI9UES RE2ULATION LICENSE
PEOPLE V BULI-E 404 SCRA 105 A,CUNA; 5 7' 1$, 2000
NATURE Appeal by cer*iorari FACTS - Complainan*s !6 in n)mber' wen* *o *he ho)se o8 appellan* #)li-e in #a-)io Ci*y )pon learnin- *ha* she was recr)i*inworkers 8or o,erseas employmen* #)li-e con8irme+ *ha* she was recr)i*in- workers 8or /aiwan an+ al*ho)-h she +i+ no* ha,e a license o8 her own, her boss in "anila !5ose8ina Alolino' was a license+ recr)i*er - #)li-e *ol+ complain*s *o s)bmi* *he re=)iremen*s *o her which she in *)rn will s)bmi* *o her boss who was in char-e o8 processin- *he +oc)men*s Complainan*s complie+ wi*h *he re=)iremen*s an+ pai+ *he +ownpaymen* - #)li-e bro)-h* *he complainan*s *o *he spo)ses AlolinoEs ho)se in Las Pinas *o 8ollow )p *heir applica*ions where *hey were ass)re+ by *he spo)ses *ha* *hey were license+ *o recr)i*s 3C1Es an+ *ha* *hey can +eploy workers wi*hin *wo *o *hree mon*hs - A8*er mon*hs o8 wai*in-, complainan*s were no* +eploye+ abroa+ as promise+ by appellan*s Gence *hey wen* *o *he P3$A in #a-)io *o 8in+ o)* whe*her or no* appellan*s are license+ recr)i*ers 1hen *hey learne+ o*herwise, *hey 8ile+ a complain* wi*h *he P3$A-CA% an+ ei-h* separa*e in8orma*ions 8or es*a8a wi*h *he #a-)io Ci*y Prosec)*or - D)rin- *rial, #)li-e *es*i8ie+ *ha* she was *aske+ *o 8in+ <ob applican*s whom she can re8er *o %:I *hro)-h 5ose8ina :he wo)l+ be pai+ 8or each re8erral 1hen #)li-e aske+ 5ose8ina ha+ a license, 5ose8ina answere+ in *he a88irma*i,e #)li-e presen*e+, "rs ;one**e Killan)e,a, *he )ni* coor+ina*or o8 P3$A-CA% *o *es*i8y *ha* %:I was a license+ employmen* a-ency an+ *ha* 5ose8ina was a license+ recr)i*er a* *he *ime *ha* #)li-e ha+ +ealin-s wi*h her co-appellan* - "rs Killan)e,a clari8ie+ *ha* licenses o8 permi*s *o recr)i* workers are *erri*orial in na*)re so *ha* an a-ency license+ in "anila can only en-a-e in recr)i*men* ac*i,i*ies wi*hin *he place speci8ie+ in *he license al*ho)-h *he applican*s may be nonresi+en*s o8 "e*ro "anila - 5ose8ina howe,er +enie+ *ha* #)li-e was an a-en* o8 "rs Fe 0o, ano*her "arke*in- Direc*or 8or %:I 5ose8ina sai+ she accep*e+ re8errals 8rom #)li-e e,en *ho)-h *he la**er was no* her a-en* or connec*e+ wi*h %:I beca)se *heir a-ency accep*s re8errals 8rom e,eryone - /he *rial co)r* 8o)n+ #)li-e an+ 5ose8ina -)il*y o8 ille-al recr)i*men* in a lar-e scale an+ es*a8a Gence *his pe*i*ion ISSUE .. 13; appellan*s are -)il*y o8 ille-al recr)i*men* in a lar-e scale 2 13; appellan*s are -)il*y o8 es*a8a HELD .. &$: Ratio /he essen*ial elemen*s o8 *he crime o8 ille-al recr)i*men* in lar-e scale are !1' *he acc)se+ en-a-es in ac*s o8 recr)i*men* an+ placemen* o8 workers +e8ine+ )n+er Ar*icle 13!b' or in any prohibi*e+ ac*i,i*ies )n+er Ar*icle 3A o8 *he Labor Co+e@ !2' *he acc)se+ has no* complie+ wi*h *he -)i+elines iss)e+ by *he :ecre*ary o8 Labor an+ $mploymen*, par*ic)larly wi*h respec* *o *he sec)rin- o8 a license or an a)*hori*y *o recr)i* an+ +eploy workers, ei*her locally or

A2010

- 11H -

Disini

IN

o,erseas@ an+ !3' *he acc)se+ commi*s *he )nlaw8)l ac*s a-ains* *hree or more persons, in+i,i+)ally or as a -ro)p 1hen ille-al recr)i*men* is commi**e+ in lar-e scale or when i* is commi**e+ by a syn+ica*e, i* is consi+ere+ as an o88ense in,ol,in- economic sabo*a-e Reasoning - 1hen complainan*s approache+ #)li-e, she -a,e *he impression *ha* she ha+ *he abili*y *o sen+ workers abroa+ by sayin- *ha* al*ho)-h she +i+ no* ha,e a license, her boss +i+ - /here is no showin- *ha* complainan*s e,er se* 8oo* in *he %:I o88ice /hey were always bro)-h* *o *he ho)se o8 *he spo)ses Alolino in Las Pinas - 5ose8inaEs ac*s clearly show *ha* she an+ #)li-e ac*e+ in concer* *owar+s *he accomplishmen* o8 a common 8elonio)s p)rpose which was *o recr)i* workers 8or o,erseas employmen* e,en *ho)-h *hey ha+ no license *o +o so - /here is no*hin- on recor+ *o corrobora*e 5ose8inaEs claim *ha* as "arke*in- Direc*or she was a)*hori4e+ *o solici* applican*s 8or o,erseas placemen* *hro)-h a+,er*isemen*s, re8errals, walkins, e*c - 5ose8ina, +espi*e *he s)spension an+ e(pira*ion o8 *he %:I license, con*in)e+ *o en-a-e in recr)i*men* ac*i,i*ies 8or o,erseas employmen* - License+ a-encies are prohibi*e+ 8rom con+)c*in- any pro,incial recr)i*men*, <ob 8airs or recr)i*men* ac*i,i*ies o8 any 8orm o)*si+e o8 *he a++ress s*a*e+ in *he license, acknowle+-e+ branch or e(*ension o88ice, wi*ho)* sec)rin- prior a)*hori*y 8rom *he P3$A 2 &$: Ratio I* is se**le+ *ha* a person con,ic*e+ o8 ille-al recr)i*men* )n+er *he Labor Co+e can also be con,ic*e+ o8 ,iola*ion o8 *he %e,ise+ Penal Co+e pro,isions on es*a8a pro,i+e+ *ha* *he elemen*s o8 *he crime are presen* Reasoning - /he elemen*s o8 es*a8a are> !1' *he acc)se+ +e8ra)+e+ ano*her by ab)se o8 con8i+ence or by means o8 +ecei*, an+ !2' *ha* +ama-e or pre<)+ice capable o8 pec)niary es*ima*ion is ca)se+ *o *he o88en+e+ par*y or *hir+ person - Appellan*s +ecei,e+ complainan*s in*o belie,in- *ha* *hey ha+ *he a)*hori*y an+ capabili*y *o sen+ *hem *o /aiwan 8or employmen* 3n *he s*ren-*h o8 s)ch ass)rance, complainan*s par*e+ wi*h *heir money in paymen* o8 *he placemen* 8ees Disposition AFFI%"$D

6.06 ILLE2AL RECRUITMENT

ELEMENTS OF CRIME
PEOPLE V ORDONO 005 SCRA 001 MENDO,A; 5 /y 10, 2000
NATURE Appeal 8rom *he +ecision o8 %/C FACTS - Complainan* Presenio Lorena is a resi+en* o8 Lib*on-, /a-)+in, Ilocos :)r Ge only 8inishe+ -ra+e school Ge earns his li,in- as a 8armer Ge was in*ro+)ce+ *o acc)se+-appellan* by her rela*i,e, Oenai+a 3r+oZo, when *hey wen* *o his resi+ence Acc)se+-appellan* represen*e+ hersel8 as one connec*e+ wi*h a recr)i*men* a-ency an+ able *o +eploy workers abroa+, par*ic)larly in Korea - A**rac*e+ by *he alle-e+ hi-h salaries in Korea, he was con,ince+ *o apply 8or an o,erseas <ob by *he acc)se+appellan* Ge pai+ s)ms o8 money an+ in re*)rn acc)se+appellan* sec)re+ 8or Lorena a passpor*, a *wo-way plane *icke* an+ some pocke* money in . : c)rrency 8rom *he money she recei,e+ 8rom him

Labor Law 1
- Acc)se+-appellan* in8orme+ Lorena *ha* K)ala L)mp)r is in Korea an+ *ha*, )pon arri,al *here, he wo)l+ be 8e*che+ by a cer*ain 5oy "e<ia 8rom *he "e*ro Go*el, where he was *ol+ *o check in 3n 5an)ary 23, 1993, Lorena *ook a Philippine Airlines 8li-h* *o K)ala L)mp)r, "alaysia As ins*r)c*e+, he s*aye+ a* *he "e*ro Go*el 8or se,eral +ays, b)* no one came *o 8e*ch him Lorena wen* *o *he Philippine $mbassy 8or assis*ance, b)* he was aske+ *o -i,e . : RH00 00 8or *he processin- o8 his work permi* As he +i+ no* ha,e eno)-h money, he came back *o *he Philippines on Febr)ary A, 1993 Ge wen* *o see acc)se+appellan* *o con8ron* her, b)* she *ol+ him *ha* i8 he wan*e+ *o *ry his l)ck a-ain in 8in+in- employmen* abroa+, he m)s* recr)i* *wo more persons so *ha* *he placemen* 8ees *hey wo)l+ pay wo)l+ be )se+ 8or his secon+ <ob applica*ion - /he o*her complainan*, 5erry Lo4ano, is also a resi+en* o8 Lib*on-, /a-)+in, Ilocos :)r Like Lorena, he is also a 8armer Ge ne,er reache+ hi-h school :ome*ime in December 1993, he was calle+ *o LorenaEs ho)se )pon acc)se+-appellan*Es re=)es* /here, Lorena in*ro+)ce+ acc)se+-appellan* *o him Acc)se+appellan* in*ro+)ce+ hersel8 *o Lo4ano as a recr)i*er o8 o,erseas workers 8or Korea Lo4ano was con,ince+ *o apply in *he hope o8 lan+in- a -oo+ <ob in Korea Lo4ano pai+ her *he *o*al amo)n* o8 PA1,000 00 in *wo ins*allmen*s Gis passpor*, *wo-way *icke* an+ pocke* money in . : +ollars were ob*aine+ 8rom *he money he ha+ pai+ *o acc)se+-appellan* Ge arri,e+ in K)ala L)mp)r, "alaysia, no* in Korea as he was promise+ /here, he was apprehen+e+ by *he "alaysian police a* *he airpor* a8*er 8in+in- *ha* he ha+ no o*her *ra,el +oc)men*s wi*h him e(cep* his passpor* Ge was kep* in a 8loo+e+ <ail 8or one ni-h* /he ne(* +ay, he was +epor*e+ *o *he Philippines A8*er arri,in- home, he saw acc)se+-appellan* an+ con8ron*e+ her As in LorenaEs case, he was *ol+ *o recr)i* *wo persons so *ha* *he money *hey wo)l+ pay 8or *heir placemen* 8ees wo)l+ be )se+ by him 8or ano*her o,erseas employmen* applica*ion - Criminal cases were 8ile+ !ille-al recr)i*men* an+ es*a8a' /he *rial co)r* 8o)n+ acc)se+ -)il*y beyon+ reasonable +o)b* an+ impose+ *he +ea*h penal*y 8or *he ille-al recr)i*men* cases ISSUE 13; acc)se+ is -)il*y o8 ille-al recr)i*men* HELD &$: - Ille-al recr)i*men* is commi**e+ when *wo elemen*s conc)r, namely> !1' *he o88en+er has no ,ali+ license or a)*hori*y re=)ire+ by law *o enable one *o law8)lly en-a-e in recr)i*men* an+ placemen* o8 workers@ an+ !2' he )n+er*akes ei*her any ac*i,i*y wi*hin *he meanin- o8 Brecr)i*men* an+ placemen*D +e8ine+ )n+er Ar* 13!b', or any o8 *he prohibi*e+ prac*ices en)mera*e+ )n+er Ar* 3A o8 *he Labor Co+e Ar* 13!b' o8 *he Labor Co+e +e8ines Brecr)i*men* an+ placemen*D as Bany ac* o8 can,assin-, enlis*in-, con*rac*in-, *ranspor*in-, )*ili4in-, hirin-, or proc)rin- workers, an+ incl)+es re8errals, con*rac* ser,ices, promisin-, or a+,er*isin- 8or employmen*, locally or abroa+, whe*her 8or pro8i* or no*@ Pro,i+e+ *ha* any person or en*i*y which in, any manner, o88ers or promises 8or a 8ee employmen* *o *wo or more persons, is consi+ere+ en-a-e+ in recr)i*men* an+ placemen* D - In *hese cases, *hese elemen*s conc)r /he cer*i8ica*ion iss)e+ by *he D3L$ %e-ional 388ice in La .nion *ha* a* *he *ime ma*erial *o *hese cases *he acc)se+-appellan* ha+ no a)*hori*y *o en-a-e in recr)i*men* ac*i,i*ies is )nreb)**e+ /he ac*s o8 acc)se+-appellan*, consis*in- o8 her promise o8 employmen* *o *he complainan*s an+ o8 *ranspor*in- *hem abroa+, 8all s=)arely wi*hin *he ambi* o8 recr)i*men* an+ placemen* as +e8ine+ by law - Ano*her in+ica*ion *ha* acc)se+-appellan* recr)i*e+ complainan*s was *he 8ac* *ha* Presenio LorenaEs Bcon*ac*D in K)ala L)mp)r was 5oy "e<ia, who is a close 8rien+ o8 acc)se+appellan* In+ee+, acc)se+-appellan*Es claim *ha* she +i+ no* represen* hersel8 as a license+ recr)i*er b)* *ha* she merely *rie+ *o help complainan*s sec)re B*o)ris* ,isasD co)l+ no* make her less -)il*y o8 ille-al recr)i*men*, i* bein- eno)-h *ha* she -a,e *he impression o8 ha,in- ha+ *he a)*hori*y *o recr)i* workers 8or +eploymen* abroa+

A2010

- 117 -

Disini

- Acc)se+-appellan* is clearly -)il*y o8 ille-al recr)i*men* #)* acc)se+-appellan* is correc* *ha* she canno* be sen*ence+ *o s)88er li8e imprisonmen* an+ pay a 8ine o8 P100,000 00 8or each co)n* o8 ille-al recr)i*men* /his is *he penal*y 8or ille-al recr)i*men* commi**e+ ei*her by a syn+ica*e or in lar-e scale, b)* *his has no* been shown in *his case /he in8orma*ions +o no* alle-e *he o88ense o8 ille-al recr)i*men* commi**e+ in lar-e scale or by a syn+ica*e b)* only o8 ille-al recr)i*men* ;or +oes *he e,i+ence show *ha* *he ille-al recr)i*men* was commi**e+ in lar-e scale or by a syn+ica*e Gence, *he applicable penal*y is *ha* pro,i+e+ )n+er Ar* 39!c' o8 *he Labor Co+e which s*a*es> 8ny person who is neither a licensee nor a holder of authority under this /itle found violating any provision thereof or its implementing rules and regulations shall, upon conviction thereof, suffer the penalty of imprisonment of not less than four years nor more than eight years or a fine of not less than P)*,*** nor more than P,**,*** or both such imprisonment and fine, at the discretion of the court! Disposition Decision appeale+ 8rom is a88irme+ wi*h mo+i8ica*ion as *o sen*ence

PEOPLE V SAGAYAGA 420 SCRA 468 CALLE5O SR; &'() a)y 20, 2004
NATURE /his is an appeal 8rom *he Decision o8 *he %e-ional /rial Co)r* o8 "anila, #ranch 3H, con,ic*in- *he appellan* Le*icia :a-aya-a o8 lar-e scale ille-al recr)i*men* as +e8ine+ in :ec*ion 7, %ep)blic Ac* ;o 60A2 an+ sen*encin- her *o s)88er li8e imprisonmen* FACTS - /he appellan* was char-e+ wi*h lar-e scale ille-al recr)i*men* in an In8orma*ion :ome*ime in *he las* week o8 3c*ober 199I, $lmer 5aner wen* *o *he o88ice o8 Al,is Placemen* :er,ice Corpora*ion *o apply 8or o,erseas employmen* as 8ac*ory worker in /aiwan Appellan* Le*icia :a-aya-a, a8*er personally recei,in- $lmerEs applica*ion, re=)ire+ him *o s)bmi* *he necessary +oc)men*s Appellan* 8)r*her aske+ $lmer *o pay se,en*y-8i,e *ho)san+ pesos !PIH,000 00' as placemen* 8ee $lmer pai+ *he sai+ 8ee *o appellan* in *hree !3' ins*allmen*s, *he 8irs*, on ;o,ember H, 199I, in *he amo)n* o8 *wen*y-8i,e *ho)san+ pesos !P2H,000 00'@ *he secon+, on ;o,ember 13, 199I, in *he amo)n* o8 8i,e *ho)san+ pesos !PH,000 00'@ an+ *he *hir+, on ;o,ember 19, 199I, in *he amo)n* o8 8or*y-8i,e *ho)san+ pesos !PAH,000 00' All *he paymen*s were ma+e insi+e Al,is Placemen* A-ency - As re=)ire+, $lmer also ha+ his me+ical e(amina*ion a* *he An-eles "e+ical Clinic, *he res)l* o8 which con8irme+ *ha* he was 8i* *o work /herea8*er, he was *ol+ *o wai* 8or *he arri,al o8 *he employer A8*er se,en !I' mon*hs, no employer arri,e+ /ire+ o8 wai*in-, $lmer +eman+e+ *ha* he be re8)n+e+ o8 his money !I+ ' Despi*e appellan*Es promises *o pay, $lmer was no* re8)n+e+ o8 his money - $(aspera*e+, $lmer aske+ appellan* 8or a promissory no*e, which appellan* e(ec)*e+, promisin- *o pay $lmer se,en*y-8i,e *ho)san+ !PIH,000 00' on "ay 7, 1996 !pp 10 an+ 11, /:;, :ep*ember I, 1999' In sai+ promissory no*e, a""ella% de(i:%a ed )e#(elf a( )e a((i( a% :e%e#al +a%a:e# !f )e "la&e+e% a:e%&, 1hen appellan* 8aile+ *o re8)n+ *he amo)n* *o $lmer on *he +a*e s*a*e+ in *he promissory no*e, *he la**er wen* *o *he Philippine 3,erseas $mploymen* A+minis*ra*ion !P3$A' an+ 8ile+ a sworn complain* a-ains* appellan* $lmer %amos an+ $ric Farol 8ile+ *heir complain* base+ on basically similar 8ac*s 1 Appe))ants Contention W /he appellan* a,ers *ha* she is no* criminally liable 8or *he crime char-e+ beca)se *he prosec)*ion 8aile+ *o pro,e *ha* she ha+ a +irec* or ac*)al con*rol, mana-emen* or +irec*ion o8 *he b)siness an+ recr)i*men* ac*i,i*ies o8 *he Al,is Placemen* :er,ices Corpora*ion !AP:C' :he asser*s *ha* she ha+ no knowle+-e o8 *he recr)i*men* ac*i,i*ies o8 AP:C an+ ha+ no par*icipa*ion wha*soe,er in i*s opera*ion In +ealin- wi*h *he

Labor Law 1
pri,a*e complainan*s, she was merely per8ormin- ro)*inary o88ice work as a mere employee Ger par*icipa*ion as an employee o8 AP:C wi*h respec* *o *he employmen* applica*ion o8 $lmer %amos 8or /aiwan was *o recei,e his placemen* 8ee o8 P20,000 00 Gence, *he appellan* a,ers, she canno* be hel+ criminally liable 8or ille-al recr)i*men* in lar-e scale I8, a* all, she can be hel+ liable only wi*h respec* *o *he employmen* applica*ions o8 5aner an+ Farol /h)s, accor+in- *o *he appellan*, *he *rial co)r* erre+ in sen*encin- her *o li8e imprisonmen* ISSUE 13; *he acc)se+-appellan* was a *op rankin- o88icer o8 sai+ corpora*ion, wi*h a)*hori*y *o par*icipa*e +irec*ly in *he con*rol, mana-emen* or +irec*ion o8 i*s b)siness a88airs HELD &$: Ratio %ecr)i*men* is Bany ac* o8 can,assin-, enlis*in-, con*rac*in-, *ranspor*in-, )*ili4in-, hirin- or proc)rin- workers, an+ incl)+es re8errals, con*rac* ser,ices, promisin- or a+,er*isin- 8or employmen*, locally or abroa+, whe*her 8or pro8i* or no*> Pro,i+e+, /ha* any person or en*i*y which, in any manner, o88ers or promises 8or a 8ee employmen* *o *wo or more persons shall be +eeme+ en-a-e+ in recr)i*men* an+ placemen* Reasoning - /he appellan*, as shown by *he recor+s o8 *he P3$A, was bo*h *he AP:C Kice-Presi+en*-/reas)rer an+ *he Assis*an* 0eneral "ana-er :he was a hi-h corpora*e o88icer who ha+ +irec* par*icipa*ion in *he mana-emen*, a+minis*ra*ion, +irec*ion an+ con*rol o8 *he b)siness o8 *he corpora*ion - .n+er :ec*ion 7 !m' o8 %ep Ac* ;o 60A2, ille-al recr)i*men* may be commi**e+ by any person, whe*her a non-licensee, nonhol+er o8 a)*hori*y, licensee or hol+er o8 a)*hori*y, *h)s> !m' Fail)re *o reimb)rse e(penses inc)rre+ by *he worker in connec*ion wi*h his +oc)men*a*ion an+ processin- 8or p)rposes o8 +eploymen*, in cases where *he +eploymen* +oes no* ac*)ally *ake place wi*ho)* *he workerEs 8a)l* - .n+er *he las* para-raph o8 *he sai+ sec*ion, *hose criminally liable are *he principals, accomplices an+ accessories In case o8 a <)ri+ical person, *he o88icers ha,in- con*rol, mana-emen* or +irec*ion o8 *he b)siness shall be criminally liable - A* any ra*e, *he acc)se+ has e(pressly a+mi**e+ in *he co)rse o8 her *es*imony *ha* she was a* *he *ime *he /reas)rer o8 *heir recr)i*men* a-ency As s)ch she was in char-e o8 *he mana-emen* an+ con*rol o8 *he 8inancial a88airs an+ reso)rces o8 *he corpora*ion :he was in char-e o8 collec*in- all i*s recei,ables, sa8ely keepin- *hem, an+ +isb)rsin- *hem :he *es*i8ie+ *ha* i* was par* o8 her +)*ies *o recei,e an+ collec* *he monies pai+ by applican*s Ger +isb)rsin- a)*hori*y has been clearly +emons*ra*e+ by her co-si-nin- *he checks $(hibi*s D-2 an+ 0 - /he appellan* is -)il*y o8 ille-al recr)i*men* as a principal by +irec* par*icipa*ion, ha,in- +eal* +irec*ly wi*h *he pri,a*e complainan*s - /he appellan*Es bare +enial o8 her in,ol,emen* in *he mana-emen*, a+minis*ra*ion, con*rol an+ opera*ion o8 AP:C canno* pre,ail o,er her <)+icial a+missions, *he posi*i,e *es*imonies o8 *he pri,a*e complainan*s an+ *he +oc)men*ary e,i+ence a++)ce+ by *he prosec)*ion - :ec*ion 7 o8 %ep Ac* ;o 60A2 pro,i+es *ha* ille-al recr)i*men* shall be consi+ere+ an o88ense in,ol,in- economic sabo*a-e i8 commi**e+ in lar-e scale, viI, commi**e+ a-ains* *hree !3' or more persons in+i,i+)ally or as a -ro)p, *he imposable penal*y 8or which is li8e imprisonmen* an+ a 8ine o8 no* less *han PH00,000 00 nor more *han P1,000,000 00 In *his case, *here are *hree pri,a*e complainan*s, namely, $lmer 5aner, $ric Farol an+ $lmer %amos /he *rial co)r*, *h)s, correc*ly con,ic*e+ *he appellan* o8 lar-e scale ille-al recr)i*men* an+ sen*ence+ her *o s)88er li8e imprisonmen* .n+er :ec*ion 7 !m' o8 %ep Ac* ;o 60A2, ille-al recr)i*men* may be commi**e+ by any person, whe*her a non-licensee, nonhol+er o8 a)*hori*y, licensee or hol+er o8 a)*hori*y, *h)s>

A2010

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Disini

!m' Fail)re *o reimb)rse e(penses inc)rre+ by *he worker in connec*ion wi*h his +oc)men*a*ion an+ processin- 8or p)rposes o8 +eploymen*, in cases where *he +eploymen* +oes no* ac*)ally *ake place wi*ho)* *he workerEs 8a)l* - .n+er *he las* para-raph o8 *he sai+ sec*ion, *hose criminally liable are *he principals, accomplices an+ accessories In case o8 a <)ri+ical person, *he o88icers ha,in- con*rol, mana-emen* or +irec*ion o8 *he b)siness shall be criminally liable

PEOPLE V BAYTIC 098 SCRA 18 CARPIO+MORALES; &'() a)y 20, 2000

NATURE Appeal 8rom *he +ecision o8 *he %e-ional /rial Co)r* o8 Y)e4on Ci*y 88in+in- *he acc)se+ -)il*y o8 ille-al recr)i*men* in lar-e scale FACTS - 3n 2A :ep*ember 1996 Kenne+y Gapones accompanie+ by acc)se+ Ale( #ay*ic wen* *o *he ho)se o8 his a)n* 38elia #on-bon-a a* H1A /abi-o :*ree*, "an--ahan, Y)e4on Ci*y /here *hey 8o)n+ 38elia, ;olie an+ Oenai+a, all s)rname+ #on-bon-a, *o-e*her wi*h "illie Passi, &olan+a #arrios an+ $l,ira ;acario Acc)se+ Ale( #ay*ic *ol+ *he -irls *ha* he was lookin- 8or workers willin- *o work in I*aly as )*ili*y personnel Ge e(plaine+ *ha* in*eres*e+ applican*s sho)l+ -i,e him money 8or processin- o8 *heir me+ical cer*i8ica*e, cer*i8ica*e o8 employmen* an+ o*her *ra,el +oc)men*s :ince *he o88er appeare+ *o be a -oo+ oppor*)ni*y *o work abroa+, 38elia #on-bon-a on *he same +ay -a,e *he acc)se+ P3,H00 00, 8ollowe+ by "illie Passi wi*h PA,000 00 *he ne(* +ay, an+ ;olie #on-bon-a wi*h PA,000 00 on H 3c*ober as *heir placemen* 8ees All *hese *ransac*ions were e,i+ence+ by receip*s iss)e+ by acc)se+ Ale( #ay*ic - Accor+in- *o pri,a*e complainan* 38elia #on-bon-a, acc)se+ #ay*ic promise+ her an+ her *wo !2' co-applican*s an in*er,iew by his co)sin, a +oc*or 8rom I*aly, on I 3c*ober 1996 a* *he Corin*hian 0ar+ens Gowe,er, on *he appoin*e+ +a*e o8 *heir in*er,iew, *he acc)se+ 8aile+ *o appear 38elia, "illie an+ ;olie 8ran*ically searche+ 8or him b)* he was nowhere *o be 8o)n+ 38elia 8)r*her *es*i8ie+ *ha* some*ime in 5an)ary 1999 *hey hear+ o,er *he ra+io *ha* acc)se+ #ay*ic was arres*e+ in PasiCi*y 8or ille-al recr)i*men* ac*i,i*ies .pon in=)iry 8rom *he ra+io s*a*ion, she learne+ *ha* *he acc)se+ was alrea+y +e*aine+ a* *he Pasi- Pro,incial 5ail, so she 8ollowe+ him *here /herea8*er, she an+ her *wo !2' o*her companions, "illie an+ ;olie, who were likewise ,ic*imi4e+ by *he acc)se+ 8ile+ *he ins*an* case a-ains* him - Acc)se+ Ale( #ay*ic, *es*i8yin- in his +e8ense, no* only +enie+ *he acc)sa*ions a-ains* him b)* also insis*e+ *ha* i* was ac*)ally Kenne+y Gapones, a new ac=)ain*ance, who was *he ille-al recr)i*er Ge reco)n*e+ *ha* some*ime in ;o,ember 1999, he wen* *o *he ho)se o8 Gapones who was *ryin- *o recr)i* him 8or +eploymen* abroa+ Accor+in- *o *he acc)se+, Gapones *ol+ him *o prepare P2H0,000 00 al*ho)-h *he 8ormer e,en*)ally accep*e+ an ini*ial a+,ance paymen* o8 PA,H00 00 Ge a-ain me* Gapones *he 8ollowin- mon*h when *he la**er *ol+ him an+ a -ro)p o8 o*her applican*s, incl)+in- 38elia #on-bon-a, *ha* *heir re=)iremen*s were rea+y /ha* was *he las* *ime he saw Gapones who, he la*er learne+, ha+ alrea+y le8* 8or abroa+ Ge was s)spec*e+ o8 bein- in cahoo*s wi*h Gapones beca)se whene,er *he la**er an+ *he applican*s *alke+, Gapones wo)l+ always poin* a* him, al*ho)-h he ne,er ha+ *he oppor*)ni*y *o know wha* Gapones ha+ ac*)ally sai+ *o *hem - #)* *he *rial co)r* s)s*aine+ *he complainin- wi*nesses an+ -a,e more cre+ence *o *heir s*rai-h*8orwar+ an+ consis*en* *es*imonies I* opine+ *ha* all *he essen*ial re=)isi*es o8 *he crime o8 ille-al recr)i*men* in lar-e scale as +e8ine+ in Ar* 13,

Labor Law 1
par !b', o8 *he Labor Co+e were presen* - /he acc)se+ ma+e represen*a*ions *o each o8 *he complainan*s *ha* he co)l+ sen+ *hem *o I*aly as <ani*or?)*ili*y ai+es *hro)-h +irec* hirin-, which cons*i*)*es a promise o8 employmen* which amo)n*e+ *o recr)i*men* as +e8ine+ )n+er Ar*icle 13!b' o8 *he Labor Co+e /he *es*imonies o8 *he *hree prosec)*ion wi*nesses *ha* *hey were ac*)ally recr)i*e+ 8or o,erseas employmen* by *he acc)se+ an+ were in+)ce+ by him *o par* wi*h *heir money re*ain )n+iminishe+ proba*i,e wor*h an+ wei-h* /he receip*s respec*i,ely iss)e+ *o *he complainan*s are s)88icien* proo8s o8 his -)il* as a-ains* acc)se+Es mere +enial o8 *he si-na*)res appearin- *herein /he mo+)s operan+i o8 *he acc)se+ was well es*ablishe+ by *he corrobora*i,e *es*imonies o8 *he wi*nesses - Acc)se+-appellan* now prays *ha* *he Co)r* *o *ake a secon+ har+ look a* his con,ic*ion in ,iew o8 *he alle-e+ 8ail)re o8 *he prosec)*ion *o pro,e his -)il* beyon+ reasonable +o)b* Ge *akes e(cep*ion *o *he 8in+in- o8 *he *rial co)r* *ha* all *he elemen*s o8 *he crime o8 ille-al recr)i*men* in lar-e scale are presen* Ge ar-)es *ha* *he 8irs* elemen*, i e , *he acc)se+ en-a-es in *he recr)i*men* an+ placemen* o8 workers, +e8ine+ )n+er Ar* 13, or in any prohibi*e+ ac*i,i*ies )n+er Ar* 3A, o8 *he Labor Co+e, is no* presen* beca)se he +i+ no* solici* any money 8rom *he complainan*s nor +i+ he promise *hem employmen* in I*aly /he *r)*h o8 *he ma**er, accor+in- *o him, is *ha* he himsel8 was ,ic*imi4e+ by Kenne+y Gapones, *he real ille-al recr)i*er Ge e(plaine+ *ha* when Gapones co)l+ no* be con*ac*e+, *he complainan*s ,en*e+ *heir an-er *owar+s him, bein- GaponesE cons*an* companion :)ch bein- *he case, acc)se+-appellan* insis*s *ha* *he secon+ elemen*, which is *he absence o8 license or a)*hori*y *o recr)i*, co)l+ no* ha,e been presen* beca)se *here was in 8ac* no nee+ 8or him *o apply 8or *he license as he was no* in *he recr)i*men* b)siness ISSUE 13; *he acc)se+ is -)il*y o8 ille-al recr)i*men* HELD &$: - /he appeale+ +ecision 8in+in- acc)se+-appellan* -)il*y o8 ille-al recr)i*men* in lar-e scale is a88irme+ Ratio Ille-al recr)i*men* is commi**e+ when *wo !2' elemen*s conc)r Firs*, *he o88en+er has no ,ali+ license or a)*hori*y re=)ire+ by law *o enable one *o en-a-e law8)lly in recr)i*men* an+ placemen* o8 workers :econ+, he or she )n+er*akes ei*her any ac*i,i*y wi*hin *he meanin- o8 9recr)i*men* an+ placemen*9 +e8ine+ )n+er Ar* 13, par !b', or any prohibi*e+ prac*ices en)mera*e+ )n+er Ar* 3A o8 *he Labor Co+e ,awphi,!nJt In case o8 ille-al recr)i*men* in lar-e scale, a *hir+ elemen* is a++e+> *ha* *he acc)se+ commi*s *he ac*s a-ains* *hree or more persons, in+i,i+)ally or as a -ro)p Reasoning - /he 8irs* elemen* is presen* P3$A represen*a*i,e Flor+eli4a Cab)sao presen*e+ in e,i+ence a cer*i8ica*ion 8rom one Germo-enes "a*eo, Direc*or III, Licensin- #ranch, showin- *ha* acc)se+-appellan* was nei*her license+ nor a)*hori4e+ *o recr)i* workers 8or o,erseas employmen* /he secon+ elemen* is likewise presen* Acc)se+-appellan* is +eeme+ en-a-e+ in recr)i*men* an+ placemen* )n+er Ar* 13, par !b', o8 *he Labor Co+e when he ma+e represen*a*ions *o each o8 *he complainan*s *ha* he co)l+ sen+ *hem *o I*aly 8or employmen* as )*ili*y personnel Prosec)*ion wi*ness 38elia #on-bon-a ca*e-orically s*a*e+ *ha* acc)se+-appellan* promise+ her employmen* 8or a 8ee, a *es*imony corrobora*e+ by bo*h complainin- wi*nesses ;olie #on-bon-a an+ "illie Passi Gis promises an+ misrepresen*a*ions -a,e *he complainan*s *he +is*inc* impression *ha* he ha+ *he a)*hori*y *o en-a-e in recr)i*men*, *h)s enablin- him *o collec* 8rom *hem ,ario)s amo)n*s 8or recr)i*men* an+ placemen* 8ees wi*ho)* license or a)*hori*y *o +o so Acc)se+-appellan*Es ,ain a**emp* a* e(c)lpa*in- himsel8 by pinpoin*in- Gapones as *he c)lpri* canno* mislea+ *his Co)r* 8rom his *ransparen* an+ ob,io)s machina*ions Gis sel8-ser,in- s*a*emen* *ha* he himsel8 was a ,ic*im o8 Gapones wil*s in *he 8ace o8 *he complainin--

A2010

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Disini

wi*nessesE *es*imonies *ha* he ma+e promises o8 employmen*, solici*e+ money 8rom *hem an+ e,en si-ne+ receip*s as proo8 o8 paymen*

LAR1E SCALE
PEOPLE V BULI-E [PAGE 110] PEOPLE V DU$UA 422 SCRA 169 *INGA; &'() a)y 5, 2004
FACTS - %amon D)<)a, his mo*her %ose D)<)a, his a)n* $+i*ha :in-h, an+ his )ncle were char-e+ wi*h Ille-al %ecr)i*men* in Lar-e :cale - /he prosec)*ion presen*e+ a Cer*i8ica*ion iss)e+ by Germo-enes C "a*eo, Direc*or II, Licensin- #ranch o8 *he P3$A, s*a*in- *ha* %amon D)<)a is no* license+ or a)*hori4e+ by *he P3$A *o recr)i* workers abroa+ Ano*her Cer*i8ica*ion, o8 e,en +a*e shows *ha* nei*her is *he 1orl+ Pack /ra,el an+ /o)rs a)*hori4e+ *o recr)i* workers abroa+ - /he %/C ren+ere+ i*s +ecision con,ic*in- %amon D)<)a o8 ille-al recr)i*men* in lar-e scale ISSUE 13; %amon D)<)a commi**e+ *he crime o8 ille-al recr)i*men* in lar-e scale HELD &$: - /he essen*ial elemen*s o8 *he crime o8 ille-al recr)i*men* in lar-e scale are> !1' *he acc)se+ en-a-es in ac*s o8 recr)i*men* an+ placemen* o8 workers +e8ine+ )n+er Ar*icle 13!b' or in any prohibi*e+ ac*i,i*ies )n+er Ar* 3A o8 *he Labor Co+e@ !2' *he acc)se+ has no* complie+ wi*h *he -)i+elines iss)e+ by *he :ecre*ary o8 Labor an+ $mploymen*, par*ic)larly wi*h respec* *o *he sec)rin- o8 a license or an a)*hori*y *o recr)i* an+ +eploy workers, ei*her locally or o,erseas@ an+ !3' *he acc)se+ commi*s *he )nlaw8)l ac*s a-ains* *hree or more persons, in+i,i+)ally or as a -ro)p - All *hree elemen*s ha,e been es*ablishe+ beyon+ reasonable +o)b* - Firs*, *he *es*imonies o8 *he complainin- wi*nesses sa*is8ac*orily pro,e *ha* appellan* promise+ *hem employmen* an+ ass)re+ *hem placemen* o,erseas Complainan*s were 8irm an+ ca*e-orical All o8 *hem posi*i,ely i+en*i8ie+ appellan* as *he person who recr)i*e+ *hem 8or employmen* abroa+ /here is no a+e=)a*e showin- *ha* any o8 *hem was impelle+ by any ill mo*i,e *o *es*i8y a-ains* appellan* /he absence o8 receip*s in a case 8or ille-al recr)i*men* +oes no* warran* *he ac=)i**al o8 *he appellan* an+ is no* 8a*al *o *he prosec)*ionEs case As lon- as *he prosec)*ion is able *o es*ablish *hro)-h cre+ible *es*imonial e,i+ence *ha* *he appellan* has en-a-e+ in Ille-al %ecr)i*men*, a con,ic*ion 8or *he o88ense can ,ery well be <)s*i8ie+ - :econ+, appellan* +i+ no* ha,e any license or a)*hori*y *o recr)i* persons 8or o,erseas work, as shown by *he Cer*i8ica*ion iss)e+ by *he P3$A ;ei*her +i+ his employer, *he 1orl+ Pack /ra,el an+ /o)rs, possess s)ch license or a)*hori*y - /hir+, i* bears clari8yin- *ha* al*ho)-h %om)lo Por*os was name+ as amon- *hose recr)i*e+ by appellan* *he e,i+ence re,eals *ha* %om)lo wi*h+rew his applica*ion in lie) o8 which his wi8e "elo+ea Killan)e,a applie+ 8or placemen* wi*h appellan* Killan)e,a, howe,er, is no* name+ as one o8 appellan*Es ,ic*ims - ;e,er*heless, i* has been alle-e+ an+ pro,en *ha* appellan* )n+er*ook *he recr)i*men* o8 no* less *han *hree persons, namely, Cab)s, Cal)*en an+ Perlas Disposition The +ecision was a88irme+ wi*h mo+i8ica*ions

Labor Law 1
PEOPLE V REYES 242 SCRA 264 MENDO,A; Ma)12 9, 1995
NATURE Appeal 8rom +ecision o8 %/C La-)na 8in+in- acc)se+ /helma %eyes -)il*y beyon+ reasonable +o)b* o8 Ille-al %ecr)i*men* +e8ine+ an+ penali4e+ )n+er Ar*icle 36, P D ;o AA2 as amen+e+, an+ sen*encin- her *o s)88er a penal*y o8 %ecl)sion Perpe*)a an+ *o pay a 8ine o8 P100,000 00 an+ *o in+emni8y %osalino #i*an- an+ Fabian #ara+as, "r +e Cas*ro, Loren4o #lan4a an+ %amon "en+o4a *he s)m o8 PAH,000 an+ *o pay *he cos*s FACTS - Appellan* /helma %eyes was char-e+ *o-e*her wi*h her h)sban+ ;ick %eyes, b)* *he la**er was a* lar-e an+ so has remaine+ )p *o now /he *rial procee+e+ only wi*h respec* *o /helma %eyes in ,iew o8 her plea o8 no* -)il*y - $,i+ence show *ha* some*ime in 196H, *he 8i,e ,ic*ims in+i,i+)ally wen* *o *he ho)se o8 appellan* in Los #aZos, La-)na, *o apply 8or employmen* abroa+ /hey were re=)ire+ *o s)bmi* *ra,el +oc)men*s !passpor*s, bir*h cer*i8ica*es, ;#I clearances, e*c' /hey pai+ ,ario)s amo)n*s o8 money *o ;ick %eyes 8or recr)i*men* 8ees, placemen* 8ees, e*c ;ick %eyes han+e+ *he money *o his wi8e /helma %eyes, an+ a8*erwar+ iss)e+ a receip* - ;ick %eyes alle-e+ly promise+ *o no*i8y *hem as soon as *hey were accep*e+ 8or employmen* so *ha* *hey co)l+ lea,e 8or abroa+, b)* *his promise was no* 8)l8ille+ 1hen *hey la*er checke+ wi*h *he Philippine 3,erseas $mploymen* A+minis*ra*ion !P3$A', *hey 8o)n+ o)* *ha* *he spo)ses were no* license+ recr)i*ers - As soon as *hey ob*aine+ *he P3$A cer*i8ica*ion *ha* appellan* an+ her h)sban+ were no* license+ *o recr)i*, *hey +eman+e+ 8rom *he spo)ses *he re*)rn o8 *heir money an+ when *he la**er +i+ no* -i,e back *heir money, *hey 8ile+ *he complain* in *his case - /helma %eyes +e8ense is *ha* o8 +enial #)* on crosse(amina*ion she a+mi**e+ *ha* *here were 8o)r*een o*her cases o8 Ille-al %ecr)i*men* 8ile+ an+?or pen+in- a-ains* her an+ her h)sban+ in +i88eren* co)r*s o8 "anila an+ claime+ *ha* some o8 *he cases ha+ been +ismisse+ or se**le+ a8*er she ha+ re8)n+e+ *he money o8 *he complainan*s - /he lower co)r* 8o)n+ /helam %eyes -)il*y an+ sen*ence+ her as s*a*e+ abo,e Gence *his appeal ISSUES 1 13; *he e,i+ence 8or *he prosec)*ion is s)88icien* *o warran* con,ic*ion 2 13; *he ,erbal *es*imonies o8 pri,a*e complainan*s sho)l+ be -i,en more cre+i* *han *he +oc)men*ary e,i+ence 8or *he acc)se+ 3 13; *wo complainan*s will s)88ice 8or con,ic*ion o8 ille-al recr)i*men* in lar-e scale HELD 1 &$: - An acc)se+ can be con,ic*e+ on *he s*ren-*h o8 *he *es*imony o8 a sin-le wi*ness, i8 s)ch *es*imony is cre+ible an+ posi*i,e an+ pro+)ces a con,ic*ion beyon+ reasonable +o)b* /ha* *he wi*ness is also *he complainan* in a case makes li**le +i88erence so lon- as *he co)r* is con,ince+ beyon+ +o)b* *ha* *he wi*ness is *ellin- *he *r)*h -In +e*erminin- *he ,al)e an+ cre+ibili*y o8 e,i+ence, wi*nesses are *o be wei-he+, no* co)n*e+ !People , Killalobos, 209 :C%A 30A M1992N' - 1hen *he iss)e is *he cre+ibili*y o8 wi*nesses, appella*e co)r*s will in -eneral no* +is*)rb *he 8in+in-s o8 *he *rial co)r* )nless cer*ain 8ac*s or circ)ms*ances o8 wei-h* ha,e been o,erlooke+, mis)n+ers*oo+ or misapplie+ which, i8 consi+ere+, mi-h* a88ec* *he res)l* o8 *he case

A2010

- 119 -

Disini

2 &$: - $,i+ence shows *ha* a8*er recei,in- *he amo)n*s 8rom complainan*s, ;ick %eyes han+e+ *he money pai+ *o *he appellan* an+ *ha* ;ick %eyes iss)e+ *he receip*s in =)es*ion only a8*er appellan* /helma %eyes ha+ co)n*e+ i* "ere claim is no* eno)-h *o o,ercome *he e,i+ence o8 *he prosec)*ion I8 *here was anyone whose *es*imony nee+e+ corrobora*ion i* was appellan* - /he 8ac* *ha* *he p)rpose 8or which paymen* was ma+e is no* s*a*e+ in *he receip*s nor why *he receip*s p)rpor* *o ha,e been iss)e+ in 9"anila9 an+ no* in Los #aZos where *hey sai+ *hey ha+ ma+e all *he paymen*s is some*hin- *o be e(plaine+ no* by *he complainan*s who ha,e an elemen*ary e+)ca*ion only, b)* by appellan* an+ her h)sban+ beca)se i* was *he la**er who ma+e *he receip*s I* is no* 8ar 8e*che+ *ha* *hey ma+e *he receip*s *his way precisely *o crea*e +o)b* as *o *heir real impor* 3 ;3 $ 2abor Code provisions1 8rt! KH BbD1 'llegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage and shall be penaliIed in accordance with 8rticle KL hereof! 8rt! KLBaD1 /he penalty of life imprisonment and a fine of 9ne 4undred /housand Pesos BP,**,***D shall be imposed of illegal recruitment constitutes economic sabotage as defined herein! - /he in8orma*ion a-ains* appellan* men*ione+ only *he *wo complainan*s Fabian #ara+as an+ %osalino #i*an- as ha,inbeen ille-ally recr)i*e+ by appellan* an+ her h)sban+ /he *rial co)r*, howe,er, hel+ appellan* -)il*y o8 ille-al recr)i*men* on a lar-e scale beca)se asi+e 8rom #ara+as an+ #i*an-, appellan* an+ her h)sban+ alle-e+ly recr)i*e+ o*hers, namely, Loren4o #lan4a, $+-ar+o 0arcia, %amon "en+o4a, an+ Dionisio +e Cas*ro - 1hen *he Labor Co+e speaks o8 ille-al recr)i*men* 9commi**e+ a-ains* *hree !3' or more persons in+i,i+)ally or as a -ro)p,9 i* m)s* be )n+ers*oo+ as re8errin- *o *he n)mber o8 complainan*s in each case who are complainan*s *herein, o*herwise, prosec)*ions 8or sin-le crimes o8 ille-al recr)i*men* can be c)m)la*e+ *o make o)* a case o8 lar-e scale ille-al recr)i*men* In o*her wor+s, a +on$i+tion ?o# )a#ge s+a)e i))ega) #e+#'it(ent ('st ,e ,ase% on a ?in%ing in ea+" +ase o? i))ega) #e+#'it(ent o? t"#ee o# (o#e pe#sons -"et"e# in%i$i%'a))* o# as a g#o'p/ - $,en i8 #lan4a an+ 0arcia ha+ been ille-ally recr)i*e+ so as *o make *he n)mber o8 persons ille-ally recr)i*e+ 8o)r an+ make *he crime *ha* o8 ille-al recr)i*men* o8 a lar-e scale, *his can no* be *he basis o8 con,ic*ion since this was not alleged in the information! - Appellan* m)s* be p)nishe+ )n+er Ar* 39!c' o8 *he Labor Co+e> BAny person who is nei*her a licensee nor a hol+er o8 a)*hori*y )n+er *his /i*le 8o)n+ ,iola*in- any pro,ision *hereo8 or i*s implemen*in- r)les an+ re-)la*ions shall )pon con,ic*ion *hereo8, s)88er *he penal*y o8 imprisonmen* o8 no* less *han 8o)r years nor more *han ei-h* years or a 8ine o8 no* less *han P20,000 nor more *han P100,000 or bo*h s)ch imprisonmen* an+ 8ine, a* *he +iscre*ion o8 *he co)r* D Disposition %/C +ecision is :$/ A:ID$ Appellan* /helma %eyes is +eclare+ -)il*y o8 ille-al recr)i*men* on *wo !2' co)n*s an+ is sen*ence+ 8or each crime *o s)88er imprisonmen* o8 7 years an+ 1 +ay *o 6 years an+ pay a 8ine o8 PH0,000 00@ an+ or+ere+ *o in+emni8y %osalino #i*an- in *he amo)n* o8 P13,H00 00 an+ Fabian #ara+as in *he amo)n* o8 P16,000 00 an+ pay *he cos*s

REFERRALS
PEOPLE V MERIS 029 SCRA 00 :APUNAN; Ma)12 28, 2000

Labor Law 1
NATURE /his is an appeal 8rom *he 5oin* Decision o8 *he %e-ional /rial Co)r* o8 "anila, #ranch 1, con,ic*in- acc)se+-appellan* Leoni+a "eris o8 ille-al recr)i*men* in lar-e-scale an+ si( co)n*s o8 es*a8a FACTS - D)rin- *he perio+ comprise+ be*ween 5an)ary 12, 1991 an+ Febr)ary 1I, 1991, acc)se+ conspirin- an+ con8e+era*in- wi*h *hree o*hers +e8ra)+e+ ;AP3L$3; %A"3:, by means o8 8alse mani8es*a*ions an+ 8ra)+)len* represen*a*ion which *hey ma+e *o ;apoleon %amos *o *he e88ec* *ha* *hey ha+ *he power an+ capaci*y *o recr)i* an+ employ him as Fac*ory 1orker in Gon-kon- an+ co)l+ 8acili*a*e *he processin- o8 *he per*inen* papers i8 -i,en *he necessary amo)n* *o mee* *he re=)iremen*s - /hey s)ccee+e+ in in+)cin- sai+ %amos *o -i,e an+ +eli,er *he amo)n* o8 P30,000 00 on *he s*ren-*h o8 sai+ mani8es*a*ions an+ represen*a*ions /he acc)se+ ob*aine+ P30K, wi*h in*en* *o +e8ra)+, an+ )nlaw8)lly misappropria*e+ *he money 8or *heir personal )se - /he se,en*h in8orma*ion in Criminal Case ;o 91-9A196 char-e+ acc)se+-appellan* wi*h ille-al recr)i*men* in lar-escale "eris 8or a 8ee recr)i*e+ an+ promise+ employmen* abroa+ *o Leo D +elos :an*os, "erli*a L #ombar+a, "ar-ari*a % ma+ae !sic', P)ri*a A Conce<a, Cris*ina I ;a,a an+ ;apoleon $ %amos, wi*ho)* 8irs* sec)rin- *he re=)ire+ license or a)*hori*y 8rom *he Dep* o8 Labor - /es*i8yin- in her own +e8ense, acc)se+-appellan* +enie+ *he char-es o8 en-a-in- in recr)i*men* ac*i,i*ies an+ o8 recei,inmoney 8rom complainan*s :he +escribe+ hersel8 as a p)blic school *eacher li,in- in Pan-asinan wi*h her 8o)r chil+ren an+ )nemploye+ h)sban+ Like *he o*her complainan*s, she claime+ she was a ,ic*im o8 5)lie "ic)a 1hen complainan*s learne+ *ha* she ha+ applie+ 8or o,erseas employmen*, *hey so)-h* her help in -oin- *o *he a-ency where she applie+ Gence, on 5an)ary 12, 1991, acc)se+-appellan* accompanie+ *he complainan*s *o see 5)lie "ic)a who ass)re+ *hem *ha* *hey wo)l+ be lea,in8or Gon-kon- wi*hin *wo or *hree mon*hs Acc)se+-appellan* claims she ne,er represen*e+ hersel8 as ha,in- *he capaci*y *o +eploy workers abroa+ :he only *ol+ *hem *ha* she co)l+ accompany *hem *o *he a-ency where she also applie+ ISSUE 13; "eris is -)il*y o8 *he char-es o8 es*a8a an+ ille-al recr)i*men* HELD &$:, she is -)il*y o8 es*a8a an+ ille-al-recr)i*men* !wi+e-scale' Reasoning - All *he complainan*s are one in sayin- *ha* acc)se+-appellan* ma+e represen*a*ions *ha* she knew someone who co)l+ help *hem sec)re employmen* in Gon-kon- %elyin- on *hese represen*a*ions, *hey applie+ 8or placemen* 8or employmen* abroa+ an+ pai+ ,ario)s s)ms o8 money *here8or .n8or*)na*ely, acc)se+-appellan* 8aile+ *o comply wi*h her promise o8 employmen* or res*i*)*e *he amo)n*s she recei,e+ 8rom *hem - /he prosec)*ion )n+o)b*e+ly pro,e+ *ha* acc)se+-appellan*, wi*ho)* license or a)*hori*y, en-a-e+ in recr)i*men* an+ placemen* ac*i,i*ies /his was +one in collabora*ion wi*h 5)lie "ic)a, when *hey promise+ complainan*s employmen* in Gon-kon- Ar* 13, par !b' o8 *he Labor Co+e +e8ines recr)i*men* an+ placemen* as 9any ac* o8 can,assin- enlis*in-, con*rac*in-, *ranspor*in-, )*ili4in-, hirin- or proc)rin- workers, an+ incl)+es re8errals, con*rac* ser,ices, promisin- or a+,er*isin- 8or employmen*, locally or abroa+, whe*her 8or pro8i* or no*@ Pro,i+e+ *ha* any person or en*i*y which, in any manner, o88ers or promises 8or a 8ee employmen* *o *wo or more persons shall be +eeme+ en-a-e+ in recr)i*men* an+ placemen* 9 - Al*ho)-h acc)se+-appellan* was no* an employee o8 *he alle-e+ ille-al recr)i*er 5)lie "ic)a, *he e,i+ence show *ha* she was *he one who approache+ complainan*s an+ pro++e+ *hem

A2010

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Disini

*o seek employmen* abroa+ I* was *hro)-h her *ha* *hey me* 5)lia "ic)a /his is clearly an ac* o8 re8erral - Ille-al recr)i*men* is con+)c*e+ in a lar-e scale i8 perpe*ra*e+ a-ains* *hree !3' or more persons in+i,i+)ally or as a -ro)p /his crime re=)ires proo8 *ha* *he acc)se+> !1' en-a-e+ in *he recr)i*men* an+ placemen* o8 workers +e8ine+ )n+er Ar*icle 13 or in any o8 *he prohibi*e+ ac*i,i*ies )n+er Ar*icle 3A o8 *he Labor Co+e@ !2' +oes no* ha,e a license or a)*hori*y *o law8)lly en-a-e in *he recr)i*men* an+ placemen* o8 workers@ an+ !3' commi**e+ *he in8rac*ion a-ains* *hree or more persons, in+i,i+)ally or as a -ro)p All *hese *hree essen*ial elemen*s are presen* in *he case Disposition Decision in =)es*ion is a88irme+

PEOPLE V FORTUNA 095 SCRA 054 %I*UG; 5a7 a)y 16, 2000
NATURE Appeal 8rom +ecision o8 %/C 8in+in- pe*i*ioner -)il*y o8 Ille-al %ecr)i*men* in Lar-e :cale FACTS - Pri,a*e complainan*s me* Domin-a For*)na y Corrales in a seminar on 9/)pperware9 pro+)c*s bein- *hen promo*e+ 8or sale in Cabana*)an Ci*y For*)na o88ere+ *he complainan*s <ob placemen*s in /aiwan Con,ince+ *ha* For*)na co)l+ ac*)ally pro,i+e *hem wi*h <obs abroa+, pri,a*e complainan*s each -a,e her *he amo)n* o8 PH,A00 00 *o *ake care o8 *he processin- 8ee 8or me+ical e(amina*ion an+ o*her e(penses 8or sec)rin- *heir respec*i,e passpor*s Pri,a*e complainan*s *ook *he me+ical e(amina*ion in "anila 1eeks wen* by b)* *he promise+ +epar*)re ha+ no* ma*eriali4e+ :)spec*in- *ha* some*hin- was no* ri-h*, *hey 8inally +eman+e+ *ha* For*)na re*)rn *heir money For*)na, in *he meanwhile, wen* 9in*o hi+in- 9 A8*er ha,in- la*er learne+ *ha* For*)na ha+ nei*her a license nor an a)*hori*y *o )n+er*ake recr)i*in- ac*i,i*ies, An-elyn "a-payo 8ile+ a complain* which, in +)e *ime, )l*ima*ely res)l*e+ in *he in+ic*men* o8 For*)na 8or ille-al recr)i*men* D)rin- *he preliminary in,es*i-a*ion, as well as la*er a* *he *rial, For*)na -a,e ass)rance *o ha,e *he money she ha+ recei,e+ 8rom pri,a*e complainan*s re*)rne+ *o *hem b)* For*)na was )nable *o make -oo+ her promise ISSUE 13; *he lower co)r* erre+ in 8in+in- pe*i*ioner -)il*y o8 Ille-al %ecr)i*men* in Lar-e :cale HELD ;3 Ratio /he r)le has been sai+ *ha* a person char-e+ wi*h ille-al recr)i*men* may be con,ic*e+ on *he s*ren-*h o8 *he *es*imony o8 *he complainan*s, i8 8o)n+ *o be cre+ible an+ con,incin-, an+ *ha* *he absence o8 receip*s *o e,i+ence paymen* *o *he recr)i*er wo)l+ no* warran* an ac=)i**al Reasoning - /he re=)isi*es cons*i*)*in- *he o88ense o8 Ille-al %ecr)i*men* in Lar-e :cale ha,e s)88icien*ly been pro,en by *he prosec)*ion +irst, appellan*, )n+eniably, has no* been +)ly license+ *o en-a-e in recr)i*men* ac*i,i*ies@ second, she has en-a-e+ in ille-al recr)i*men* ac*i,i*ies, o88erin- pri,a*e complainan*s employmen* abroa+ 8or a 8ee@ an+ third, she has commi**e+ *he =)es*ione+ ille-al recr)i*men* ac*i,i*ies a-ains* *hree or more persons /he per*inen* pro,isions o8 %A 60A2 s*a*e> B:$C 7 De8ini*ion T C ille-al recr)i*men* shall mean any ac* o8 can,assin-, enlis*in-, con*rac*in-, *ranspor*in-, )*ili4in-, hirin-, or proc)rin- workers an+ incl)+es re8errin-, con*rac* o8 ser,ices, promisin- or a+,er*isin- 8or employmen* abroa+ C when )n+er*aken by a non-license or non-hol+er o8 a)*hori*y con*empla*e+ C ((( ((( (((

Labor Law 1
Ille-al recr)i*men* C is +eeme+ commi**e+ in lar-e scale i8 commi**e+ a-ains* *hree !3' or more persons in+i,i+)ally or as a -ro)p D Disposition *he appeale+ +ecision o8 *he %/C is AFFI%"$D

A2010

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Disini

EMPLOYEES
PEOPLE V CORPUZ 412 SCRA 4$9 4NARES+SAN*IAGO; O1#8(') 1, 2000
NATURE Appeal 8rom *he +ecision o8 *he %/C o8 "anila FACTS - Pri,a*e complainan*s #elin+a Caban*o-, Concepcion :an Die-o, $rlin+a Pasc)al an+ %es*ian :)rio wen* *o Al-a-"oher In*erna*ional Placemen* :er,ices Corpora*ion *o apply as 8ac*ory workers in /aiwan /here *hey me* "rs %eyes, *he presi+en* o8 *he sai+ a-ency /hey were aske+ *o 8ill )p applica*ion 8orms an+ re*)rn *o *he o88ice *o pay P10,000 as processin- 8ee - /hey re*)rne+ a8*er a mon*h "rs %eyes was no* a* *he o88ice a* *ha* *ime b)* she calle+ appellan* Corp)4 *o recei,e *he 8ees - 2 mon*hs la*er, no*hin- happene+ *o *heir applica*ions /hey aske+ Corp)4 *o re8)n+ *he money :he sai+ i* was alrea+y remi**e+ *o "rs %eyes Complainan*s approache+ "rs %eyes b)* she *ol+ *hem *ha* *he money she recei,e+ 8rom Corp)4 was in paymen* o8 *he la**erEs +eb* - /he complainan*s 8ile+ a complain* an+ Corp)4 was arres*e+ an+ +e*aine+ 1hile *he case was on *he %/C, *he complainan*s recei,e+ a re8)n+ o8 *heir money 8rom complainan*Es sis*er-inlaw /hey *hen e(ec)*e+ a88i+a,i*s o8 +esis*ance - Appelan* con*en+s she +i+ no* ha,e a par* wi*h *he ille-al recr)i*men* as she merely recei,e+ *he money on behal8 o8 "rs %eyes, whome she was workin- as a secre*ary 8or abo)* 3 mon*hs - %/C 8o)n+ Cor)p)4 -)il*y 8or ,iola*ion o8 %A 60A2 ISSUE 13; Corp)4 can be hel+ liable )n+er %A 60A2 HELD ;3 - Appellan* con*en+s *ha* she is no* liable 8or *he 8ore-oinille-al recr)i*men* ac*i,i*ies consi+erin- *ha* she was merely an employee ha,in- no con*rol o,er *he recr)i*men* b)siness o8 *he Al-a-"oher In*erna*ional Placemen* :er,ices Corpora*ion an+ *ha* she +i+ no* ac*)ally recr)i* *he pri,a*e complainan*s "oreo,er, she +i+ no* appropria*e 8or her own )se *he processin- 8ees she recei,e+ an+ she ha+ no knowle+-e *ha* *he a-encyEs license was s)spen+e+ by *he P3$A %/C con,ic*e+ her beca)se +espi*e *he s)spension o8 *he license since she was able *o con,ince *he complainan*s *o -i,e her *heir money - From *he 8ore-oin- *es*imony, i* is clear *ha* all appellan* +i+ was recei,e *he processin- 8ees )pon ins*r)c*ion o8 "rs %eyes :he nei*her con,ince+ *he pri,a*e complainan*s *o -i,e *heir money nor promise+ *hem employmen* abroa+ - As s*a*e+ in *he las* sen*ence o8 :ec*ion 7 o8 %A 60A2, *he persons who may be hel+ liable 8or ille-al recr)i*men* are *he principals, accomplices an+ accessories In case o8 <)ri+ical persons, *he o88icers ha,in- con*rol, mana-emen* or +irec*ion o8 *heir b)siness shall be liable - An employee o8 a company or corpora*ion en-a-e+ in ille-al recr)i*men* may be hel+ liable as principal, *o-e*her wi*h his employer, i8 i* is shown *ha* he ac*i,ely an+ conscio)sly par*icipa*e+ in ille-al recr)i*men* Gowe,er, where i* is shown *ha* *he employee was merely ac*in- )n+er *he +irec*ion o8 his s)periors an+ was )naware *ha* his ac*s cons*i*)*e+ a crime, he

may no* be hel+ criminally liable 8or an ac* +one 8or an+ in behal8 o8 his employer - In *he case a* bar, *he prosec)*ion 8aile+ *o a++)ce s)88icien* e,i+ence *o pro,e appellan*Es ac*i,e par*icipa*ion in *he ille-al recr)i*men* ac*i,i*ies o8 *he a-ency As alrea+y es*ablishe+, appellan* recei,e+ *he processin- 8ees o8 *he pri,a*e complainan*s 8or an+ in behal8 o8 "rs %eyes who or+ere+ her *o recei,e *he same :he nei*her -a,e an impression *ha* she ha+ *he abili*y *o +eploy *hem abroa+ nor con,ince+ *hem *o par* wi*h *heir money "ore impor*an*ly, she ha+ no knowle+-e *ha* *he license was s)spen+e+ *he +ay be8ore she recei,e+ *he money /heir 8ail)re *o +epar* 8or /aiwan was +)e *o *he s)spension o8 *he license, an e,en* which appellan* +i+ no* ha,e con*rol o8 Ger 8ail)re *o re8)n+ *heir money imme+ia*ely )pon *heir +eman+ was beca)se *he money ha+ been remi**e+ *o "rs %eyes on *he same +ay she recei,e+ i* 8rom *hem Disposition Decision re,erse+

PEOPLE V SAGAYAGA [PAGE 111] PEOPLE V GUTIERREZ 422 SCRA 02 */NGA; &'() a)y 5, 2004
NATURE Appeal 8rom *he +ecision o8 *he *rial co)r* FACTS - FL3% 0./I$%%$O & /I"3D wi*h C$CILIA #A./I:/A, $:/G$% 0A"ILD$, LI;DA %A#AI;3 an+ "A%IL&; 0A%CIA m)*)ally helpe+ one ano*her in recr)i*in- 8or o,erseas <ob placemen* an+ ac*)al con*rac* $K$L&; K %A"3:, %3:$"A%I$ I /.0AD$, 0$;$%3:A 0 A:.;CI3; an+ %3:AL&; # :."A&3 as +omes*ic helpers in D)bai, .ni*e+ Arab $mira*es, 8or a 8ee ran-in- 8rom P10,000 00 *o P1H,000 00 each, wi*ho)* 8irs* ob*ainin- *he re=)ire+ license an+?or a)*hori*y 8rom *he Philippine 3,erseas $mploymen* A+minis*ra*ion !P3$A' - In her +e8ense, *he acc)se+ claime+ *ha* as an BemployeeD o8 a +)ly license+ a-ency who was *aske+ *o recr)i* an+ o88er <ob placemen*s abroa+, she co)l+ no* be hel+ liable 8or ille-al recr)i*men* :he a+mi**e+ *ha* she ha+ no a)*hori*y *o recr)i* in her personal capaci*y, b)* *ha* her a)*hori*y emana*e+ 8rom a :pecial Power o8 A**orney !:PA' an+ a Cer*i8ica*ion iss)e+ by a license+ a-ency - A* *he *ime complainan*s applie+ 8or o,erseas employmen*, *he acc)se+ was Bemploye+D as a "arke*in- Direc*ress o8 :ari8)+in "anpower an+ 0eneral :er,ices, a +)ly license+ a-ency A :pecial Power o8 A**orney !:PA' 8rom :ari8)+in, +a*e+ "ay 1, 199A A Cer*i8ica*ion +a*e+ Febr)ary 3, 199H, iss)e+ by *he same a-ency, also s*a*es *ha*> B"%: FL3% / 0./I$%%$O was !sic' employe+ as 3K$%:$A: "A%K$/I;0 DI%$C/%$:: o8 :A%IF.DI; "A;P31$% A;D 0$;$%AL :$%KIC$:, e88ec*i,e "ay 199A, )p *o *he presen*D - #)* $+win Cris*obal, P3$A Labor $mploymen* 388icer, 8o)n+ *ha* *he sai+ a-ency re,oke+ *he appoin*men* o8 "s Flor 0)*ierre4 as 3,erseas "k*- Direc*or?"ana-er in a le**er +a*e+ Dec 1H, 199H, al*ho)-h P3$A has no* recei,e+ nor acknowle+-e+ *he represen*a*ion o8 "s 0)*ierre4 Cris*obal e(plaine+ *ha* *he P3$A, B;e,er ha+ a le**er 8rom :ari8)+in re-is*erin- or a)*hori4in- Flor 0)*ierre4 ra*her, Mwha*N we recei,e+ Mwas aN re,oca*ion o8 her appoin*men* D Ge also re,eale+ *ha* *he name o8 *he acc)se+ +oes no* appear in *he recor+s o8 *he P3$A as bein- employe+ by *he a-ency 8rom *he ass)mp*ion o8 i*s license on 5)ne 11, 1993, )p *o i*s *ermina*ion on 5)ne 11, 199H - De8ense likewise alle-e+ *ha* complainan*s %osemarie /)-a+e an+ $,elyn %amos e(ec)*e+ A88i+a,i*s o8 Desis*ance +a*e+ "ay 12, 199H, s*a*in- *ha* *he acc)se+ ha+ re*)rne+ *o *hem *he amo)n*s *hey pai+ her an+ *ha* *he complain* was a res)l* o8 a mis)n+ers*an+in-

Labor Law 1
- /rial co)r* ren+ere+ i*s Decision 8in+in- *he acc)se+ -)il*y beyon+ reasonable +o)b* o8 Ille-al %ecr)i*men* in Lar-e :cale Acc)se+ Flor 0)*ierre4 8ile+ an appeal seekin- *he re,ersal o8 her con,ic*ion ISSUE 13; 0)*ierres as a represen*a*i,e o8 a +)ly license+ recr)i*men* a-ency, she canno* be hel+ -)il*y o8 Ille-al %ecr)i*men* in Lar-e :cale HELD ;3 - Appellan* canno* escape liabili*y by claimin- *ha* she was no* aware *ha* be8ore workin- 8or her employer in *he recr)i*men* a-ency, she sho)l+ 8irs* be re-is*ere+ wi*h *he P3$A Ille-al recr)i*men* in lar-e scale is mal)m prohibi*)m, no* mal)m in se 0oo+ 8ai*h is no* a +e8ense - /ha* appellan* en-a-e+ in recr)i*men* an+ placemen* is beyon+ +isp)*e /he complainin- wi*nesses ca*e-orically *es*i8ie+ *ha* *he acc)se+ promise+ *hem on se,eral occasions *ha* *hey wo)l+ be lea,in- 8or work abroa+ Appellan* recei,e+ complainan*sE money an+ +oc)men*s, a 8ac* *ha* *he complainan*s *hemsel,es wi*nesse+ an+ which *he acc)se+ acknowle+-e+ when she re*)rne+ *he same *o *hem a8*er *he 8ilin- o8 *he case a-ains* her Appellan* e,en bro)-h* complainan* %osalyn :)mayo *o *he airpor* *hree *imes, raisinher e(pec*a*ions, b)* lea,in- her han-in- in mi+-air /he acc)se+ e,en ha+ *he a)+aci*y *o +eman+ cancella*ion 8ees 8rom *he complainan*s when *hey aske+ 8or a re8)n+ "oreo,er, *he A88i+a,i*s o8 Desis*ance e(ec)*e+ by *wo o8 *he complainan*s +eser,e li**le wei-h* /he Co)r* a**aches no pers)asi,e ,al)e *o a88i+a,i*s o8 +esis*ance, especially when e(ec)*e+ as an a8*er*ho)-h* - :ec*ion 11, %)le II, #ook II o8 *he %)les an+ %e-)la*ions 0o,ernin- 3,erseas $mploymen* re=)ires *he prior appro,al o8 *he P3$A o8 *he appoin*men* o8 represen*a*i,es or a-en*s> :ec*ion 11 Appoin*men* o8 %epresen*a*i,es $,ery appoin*men* o8 represen*a*i,es or a-en*s o8 license+ a-ency shall be s)b<ec* *o prior appro,al or a)*hori*y o8 *he A+minis*ra*ion /he appro,al may be iss)e+ )pon s)bmission o8 or compliance wi*h *he 8ollowin- re=)iremen*s> a Propose+ appoin*men* or :pecial Power o8 A**orney@ b Clearances o8 *he propose+ represen*a*i,e or a-en* 8rom ;#I@ c A sworn or ,eri8ie+ s*a*emen* by *he +esi-na*in- or appoin*in- person or company ass)min- 8)ll responsibili*y 8or all *he ac*s o8 *he a-en* or represen*a*i,e +one in connec*ion wi*h *he recr)i*men* an+ placemen* o8 workers Appro,al by *he A+minis*ra*ion o8 *he appoin*men* or +esi-na*ion +oes no* a)*hori4e *he a-en* or represen*a*i,e *o es*ablish a branch or e(*ension o88ice o8 *he license+ a-ency represen*e+ Any re,oca*ion or amen+men* in *he appoin*men* sho)l+ be comm)nica*e+ *o *he a+minis*ra*ion 3*herwise, *he +esi-na*ion or appoin*men* shall be +eeme+ as no* re,oke+ or amen+e+ :ec*ion 1, %)le L o8 *he same #ook, in *)rn, pro,i+es *ha* Brecr)i*men* an+ placemen* ac*i,i*ies o8 a-en*s or represen*a*i,es appoin*e+ by a licensee, whose appoin*men*s were no* a)*hori4e+ by *he A+minis*ra*ion shall likewise cons*i*)*e ille-al recr)i*men* D - /he Cer*i8ica*ion 8rom *he P3$A *ha* i* Bhas no* recei,e+ nor acknowle+-e+ *he represen*a*ion o8 "s 0)*ierre4D es*ablishes *ha* *he appoin*men* o8 appellan* by :era8)+in as a represen*a*i,e or a-en* was no* a)*hori4e+ by *he P3$A I* may be *r)e *ha* *he P3$A recei,e+ 8rom :era8)+in a re,oca*ion o8 appellan*Es appoin*men*, b)* s*ill is o8 no conse=)ence since :era8)+in in *he 8irs* place +i+ no* s)bmi* her appoin*men* *o *he P3$A, an+ so *he P3$A has no*hin- *o appro,e - As 8o)n+ by *he *rial co)r* *he e,i+ence on recor+, no*ably appellan*Es own ,ersion, in+ica*es *ha* she was r)nnin- her own labor recr)i*men* b)siness

A2010

- 122 -

Disini

Disposition Decision o8 *he %e-ional /rial Co)r*, 8in+inappellan* Flor 0)*ierre4 y /imo+ -)il*y beyon+ reasonable +o)b* o8 *he crime o8 Ille-al %ecr)i*men* in Lar-e :cale an+ sen*encin- her *o li8e imprisonmen* an+ *o pay a 8ine o8 P100,000 00 is AFFI%"$D

6.07 ENFORCEMENT SANCTIONS

E!ECUTIVE SECRETARY V CA [PAGE 20]

AND

6.0- LIA/ILITY OF A2ENCY

G & M (PHIL) INC V BATOMALAQUE 461 SCRA 111 CARPIO MORALES; 5 7' 20, 2005
NATURE Appeal 8rom a +ecision o8 CA FACTS - In Feb [92, Ab+)l A4i4 Car "ain*enance Associa*ion, a :a)+i Arabian en*i*y base+ in %iya+h, hire+ respon+en*, 1illie #a*omala=)e, as a car pain*er a* a mon*hly salary o8 .:R3I0 8or a 2-year perio+ *hro)-h i*s a-en*, pe*i*ioner 0U" !Phil ', Inc In accor+ance wi*h *he employmen* con*rac*, respon+en* s*ar*e+ workin- 8or Ab+)l A4i4 in "ar E92 a* a mon*hly salary o8 .:R3I0 which accor+in- *o him was e=)i,alen* *o 1,200 :a)+i riyals - In 5)ne [9A respon+en* was repa*ria*e+ an+ la*er 8ile+ a complain* a-ains* pe*i*ioner, Ab+)l A4i4, an+ Co)n*ry $mpire Ins)rance Company wi*h *he P3$A 8or non-paymen* an+ )n+erpaymen* o8 salaries an+ +ama-es - #a*omala=)e claime+ *ha* 8or *he 8irs* A mon*hs o8 employmen*, he recei,e+ a mon*hly salary o8 900 :a)+i riyals, an+ 8or *he 8i8*h mon*h !5)ly [92' )p *o *he en+ o8 *he 12*h mon*h !Feb [93', he recei,e+ a mon*hly salary o8 I00 :a)+i riyals@ *ha* a8*er a 1-year s*in* wi*h Ab+)l A4i4, *he workshop where he was workin- was sol+ b)* *he new owner +i+ no* hire him@ *ha* 8or 11 mon*hs he was <obless@ *ha* Ab+)l A4i4 hire+ him a-ain an+ s*ar*e+ workin- 8or i* in Feb [9A 8or which he was pai+ 1,200 :a)+i riyals@ an+ *ha* he resi-ne+ in "ay [9A since he was no* pai+ his salary 8or *he mon*hs o8 "arch an+ April [9A, which 2-mon*h salary, was, howe,er, )se+ *o p)rchase his airline *icke* on his repa*ria*ion *o *he Philippines LA, ;L%C an+ CA r)le+ in 8a,or o8 respon+en* ISSUES 1 13; CA erre+ in awar+in- respon+en* his )n+erpaymen* o8 salaries an+ wa-es 2 13; pe*i*ioner, as *he recr)i*er an+ a-en* o8 Ab+)l A4i4, is *h)s soli+arily liable wi*h *he la**er 8or *he )npai+ wa-es o8 respon+en* HELD 1 ;3 Ratio I* is se**le+ *ha* as a -eneral r)le, a par*y who alle-es paymen* as a +e8ense has *he b)r+en o8 pro,in- i* :peci8ically wi*h respec* *o labor cases, *he b)r+en o8 pro,in- paymen* o8 mone*ary claims res*s on *he employer, *he ra*ionale bein- *ha* *he per*inen* personnel 8iles, payrolls, recor+s, remi**ances an+ o*her similar +oc)men*s Q which will show *ha* o,er*ime, +i88eren*ials, ser,ice incen*i,e lea,e an+ o*her claims o8 workers ha,e been pai+ Q are no* in *he possession o8 *he worker b)* in *he c)s*o+y an+ absol)*e con*rol o8 *he employer Reasoning - Asi+e 8rom i*s bare alle-a*ion *ha* i*s principal Ab+)l A4i4 ha+ 8)lly pai+ respon+en*Es salaries, pe*i*ioner +i+ no* presen* any

Labor Law 1
e,i+ence, e - , payroll or payslips, *o s)ppor* i*s +e8ense o8 paymen* 2 &$: Ratio Con*rac*)al )n+er*akin-s s)bmi**e+ *o *he #)rea) o8 $mploymen* :er,ices cons*i*)*e *he le-al basis 8or hol+inpe*i*ioner, an+ o*her pri,a*e employmen* or recr)i*men* a-encies, liable <oin*ly an+ se,erally wi*h i*s principal, *he 8orei-n-base+ employer, 8or all claims 8ile+ by recr)i*e+ workers which may arise in connec*ion wi*h *he implemen*a*ion o8 *he ser,ice a-reemen*s or employmen* con*rac*s Reasoning @7A #asis 8or liabili*y> +irst, in applyin- 8or i*s license *o opera*e a pri,a*e employmen* a-ency 8or o,erseas recr)i*men* an+ placemen*, pe*i*ioner was re=)ire+ *o s)bmi*, amon- o*hers, a +oc)men* or ,eri8ie+ )n+er*akin- whereby i* ass)me+ all responsibili*ies 8or *he proper )se o8 i*s license an+ *he implemen*a*ion o8 *he con*rac*s o8 employmen* wi*h *he workers i* recr)i*e+ an+ +eploye+ 8or o,erseas employmen* Second, i* was also re=)ire+ *o 8ile wi*h #)rea) a 8ormal appoin*men* or a-ency con*rac* e(ec)*e+ by *he 8orei-n-base+ employer in i*s 8a,or *o recr)i* an+ hire personnel 8or *he 8ormer, which con*aine+ a pro,ision empowerin- i* *o s)e an+ be s)e+ <oin*ly an+ soli+arily wi*h *he 8orei-n principal 8or any o8 *he ,iola*ions o8 *he recr)i*men* a-reemen* an+ *he con*rac*s o8 employmen* An+ third, i* was re=)ire+ as well *o pos* s)ch cash an+ s)re*y bon+s as +e*ermine+ by *he :ec o8 Labor *o -)aran*ee compliance wi*h prescribe+ recr)i*men* proce+)res, r)les an+ re-)la*ions, an+ *erms an+ con+i*ions o8 employmen* as appropria*e @<A /he 8ac* o8 )n+erpaymen* +oes no* shi8* *he b)r+en o8 e,i+ence *o *he respon+en* #a*omala=)e beca)se par*ial paymen* +oes no* e(*in-)ish *he obli-a*ion 3nly when *he +eb*or in*ro+)ces e,i+ence *ha* *he obli-a*ion has been e(*in-)ishe+ +oes *he b)r+en o8 e,i+ence shi8* *o *he cre+i*or who is *hen )n+er a +)*y o8 pro+)cin- e,i+ence *o show why paymen* +oes no* e(*in-)ish *he obli-a*ion Disposition CA +ecision is AFFI%"$D wi*h *he "3DIFICA/I3; #a*omala=)e is only en*i*le+ *o H,200 :a)+i riyals, ins*ea+ o8 H,H00 :a)+i riyals

A2010

- 123 -

Disini

- Paramio e* al ar-)e+ *ha* )n+er Se& i!% .0< Re"'0li& A& N!. -046< ! )e#8i(e =%!8% a( )e Mi:#a% 3!#=e#( a%d O$e#(ea( Fili"i%!( A& !f .;;5, P:%I was soli+arily liable wi*h K)an &)an 8or *heir claims :ince *hey were repa*ria*e+ prior *o *he e(pira*ion o8 *heir respec*i,e con*rac*s 8or no ,ali+ reason, P:%I was liable *o pay *heir salaries 8or *he )ne(pire+ por*ion o8 *heir con*rac*s - a-ency on *he o*her han+ con*en+e+ *ha* all o8 *hem were ,ali+ly +ismisse+ - Labor Arbi*er r)le+ *ha* *heir +ismissal was ille-al an+ awar+e+ +ama-es ;L%C re,erse+ CA a88irme+ +ecision o8 Labor Arbi*er ISSUES 13; *he respon+en*s were ille-ally +ismisse+ HELD ;3 - 1e r)le *ha* respon+en*sE +ismissal was no* base+ on <)s*, ,ali+ an+ le-al -ro)n+s - /he r)le le& loci contractus !*he law o8 *he place where *he con*rac* is ma+e' -o,erns /here8ore, *he Labor Co+e, i*s implemen*in- r)les an+ re-)la*ions, an+ o*her laws a88ec*inlabor, apply in *his case - In or+er *o e88ec* a ,ali+ +ismissal o8 an employee, *he law re=)ires *ha* *here be <)s* an+ ,ali+ ca)se as pro,i+e+ in Ar*icle 262 an+ *ha* *he employee was a88or+e+ an oppor*)ni*y *o be hear+ an+ *o +e8en+ himsel8 - re-ar+in- Paramio a-ency insis*s *ha* his +ismissal was ,ali+ base+ on para-raph 6 2, ;os H an+ 7, Ar*icle KIII o8 *he employmen* con*rac* which s*a*es *ha* i8 employer 8in+s employee wi*h a +isease which canno* be c)re+ wi*hin a mon*h@ or bein- 8o)n+ losin- abili*y *o work, employer may rescin+ con*rac* an+ repa*ria*e employee wi*h air8are cos*s a-ains* employee - Gowe,er Ar* 26A o8 Labor Co+e an+ :ec*ion 6, %)le 1, #ook KI o8 *he 3mnib)s %)les Implemen*in- *he Labor Co+e s*a*e *ha* BC*he employer shall no* *ermina*e his employmen* )nless *here is a cer*i8ica*ion by compe*en* p)blic a)*hori*y *ha* *he +isease is o8 s)ch na*)re or a* s)ch a s*a-e *ha* i* canno* be c)re+ wi*hin a perio+ o8 si( !7' mon*hs wi*h proper me+ical *rea*men*D - employer has *he +)*y *o pro,e *ha* employee canno* con*in)e work +)e *o *he +isease - *his was no* pro,en In 8ac*, +espi*e *he *h)mb in<)ry s)s*aine+ by Paramio, he was e,en assi-ne+ *o *he mos* physically *a(in- <obs 3nly a8*er he co)l+ no lon-er bear *he pain +i+ he ask 8or a li**le break - *h)s his +ismissal base+ on his in<)ry was ille-al Conse=)en*ly, respon+en* Paramio is en*i*le+ *o *he 8)ll reimb)rsemen* o8 his placemen* 8ee wi*h in*eres* a* *wel,e percen* !12P' per ann)m, pl)s his salaries 8or *he )ne(pire+ por*ion o8 his employmen* con*rac* 8or *hree mon*hs 8or e,ery year o8 *he )ne(pire+ *erm, whiche,er is less )n+er para-raph H, :ec*ion 10 o8 %ep Ac* ;o 60A2> B:ec*ion 10 M!%e, Clai+( CIn case o8 *ermina*ion o8 o,erseas employmen* wi*ho)* <)s*, ,ali+ or a)*hori4e+ ca)se as +e8ine+ by law or con*rac*, *he worker shall be en*i*le+ *o *he 8)ll reimb)rsemen* o8 his placemen* 8ee wi*h in*eres* a* *wel,e percen* !12P' per ann)m, pl)s his salaries 8or *he )ne(pire+ por*ion o8 his employmen* con*rac* or *hree !3' mon*hs 8or e,ery year o8 *he )ne(pire+ *erm, whiche,er is less D - also, S#ippers Pacific, 'nc! v! ira, we r)le+ *ha* an o,erseas Filipino worker who is ille-ally *ermina*e+ shall be en*i*le+ *o his salary e=)i,alen* *o *he )ne(pire+ por*ion o8 his employmen* con*rac* i8 s)ch con*rac* is less *han one year Gowe,er, i8 his con*rac* is 8or a perio+ o8 a* leas* one year, he is en*i*le+ *o recei,e his salaries e=)i,alen* *o *he )ne(pire+ por*ion o8 his con*rac*, or *hree mon*hsE salary 8or e,ery year o8 *he )ne(pire+ *erm, whiche,er is lower - %e-ar+in- Paramio, i* was also no* pro,en *ha* he ha+ an al*erca*ion wi*h his s)perior /he a-ency ne,er presen*e+ e,i+ence *o pro,e s)ch claim /hey werenE* e,en able *o pro,i+e a s*a*emen* 8rom his s)perior re-ar+in- *he iss)e

6.0; MI2RANT 3OR7ERS ACT

PHIL EMPLOY SERVICES AND RESOURCES INC V PARAMIO 42$ SCRA $02 CALLE5O SR; A-)./ 15, 2004
FACTS - pe*i*ioners are a local a-ency en-a-e+ in *he b)siness o8 pro,i+in- employmen* o,erseas - %espon+en*s are o,erseas workers sen* by sai+ a-ency *o work 8or K)an &)an Fiber Co , L*+ Gsei-Chan- /hey ha+ separa*e con*rac*s an+ each pai+ P19,000 as placemen* 8ee - /hey e(perience+ an+ en+)re+ harsh con+i*ions incl)+inea*in- <)s* one meal a +ay, s)bs*an+ar+ li,in- =)ar*ers, e(cessi,e workin- ho)rs, )ne(plaine+ +e+)c*ions in salaries amon- o*hers - Paramio, in *he co)rse o8 his work an+ +)e *o no* bein- 8e+ +inner an+ break8as*, in<)re+ his *h)mb while carryin- a hea,y loa+ D)e *o *his he was sen* home wi*h si-ni8ican* +e+)c*ions *o his pay - ;a,arra alle-e+ly ha+ an al*erca*ion wi*h his s)perior an+ +)e *o *his was repa*ria*e+ - o*her respon+en*s op*e+ *o -o home +)e *o sai+ inh)mane work con+i*ions *hey were s)b<ec*e+ *o /hey were ma+e *o wri*e =)i*claims an+ pay 8or *heir own air8are - .pon arri,in- in "anila, *hey ins*i*)*e+ separa*e ac*ions 8or ille-al +ismissal, non-paymen* o8 o,er*ime pay, re8)n+ o8 placemen* 8ee, *a( re8)n+, re8)n+ o8 plane 8ares, a**orneyEs 8ees an+ li*i-a*ion e(penses a-ains* *he a-ency

Labor Law 1
%espon+en* ;a,arra asser*e+ *ha* he merely en8orce+ his ri-h*s )n+er *he employmen* con*rac* when he re=)es*e+, *ime an+ a-ain, *ha* *he pro,isions o8 his con*rac* re-ar+in- *he accommo+a*ion be 8)l8ille+ - ;a,arra was +eploye+ on ;o,ember 7, 1997 Ge was repa*ria*e+ on "ay 10, 199I, appro(ima*ely 8i,e mon*hs prior *o *he e(pira*ion o8 his one-year con*rac* Ge shall be en*i*le+ *o an amo)n* e=)i,alen* *o *hree mon*hsE salary, or ;/RA7,060 :imilarly, ha,in- a+mi**e+ *ha* he pai+ a placemen* 8ee o8 P19,000 only, he is en*i*le+ *o be 8)lly reimb)rse+ *here8ore, pl)s 12P in*eres* per ann)m - re-ar+in- *he o*her respon+en*s, *heir =)i*claims were no* ,ali+ /he recor+s re,eal *ha* *he *hree respon+en*s a-ree+ *o e(ec)*e *he 8ore-oin- beca)se *hey co)l+ no lon-er bear *he workin- con+i*ions in *heir place o8 employmen* Despi*e pro*es*a*ions *o *heir employer an+ *he a**emp* *o seek help 8rom *he 311A in /aiwan - *hey were cons*r)c*i,ely +ismisse+ 8rom *heir employmen* /here is cons*r)c*i,e +ismissal i8 an ac* o8 clear +iscrimina*ion, insensibili*y, or +is+ain by an employer becomes so )nbearable on *he par* o8 *he employee *ha* i* wo)l+ 8oreclose any choice by him e(cep* *o 8ore-o his con*in)e+ employmen* - .n+er :ec*ion 10, para-raph H o8 %ep Ac* ;o 60A2, respon+en*s :armien*o, #a)*is*a, C)ramen- an+ 0)illermo are en*i*le+ *o *he 8)ll reimb)rsemen* o8 *heir placemen* 8ees :ince each o8 *he respon+en*s remi**e+ only P19,000 *o *he pe*i*ioner, each o8 *hem is en*i*le+ *o P19,000, pl)s 12P in*eres* per ann)m - :ec*ion 10, para-raph 2 o8 %ep Ac* ;o 60A2, *he a-ency which +eploye+ *he employees whose employmen* con*rac* were a+<)+-e+ ille-ally *ermina*e+, shall be <oin*ly an+ soli+arily liable wi*h *he principal 8or *he money claims awar+e+ *o *he a8oresai+ employees Conse=)en*ly, *he pe*i*ioner, as *he a-ency o8 *he respon+en*s, is soli+arily liable wi*h i*s principal K)an &)an 8or *he paymen* o8 *he salaries +)e *o *he respon+en*s correspon+in- *o *he )ne(pire+ por*ion o8 *heir con*rac*, as well as *he reimb)rsemen* o8 *heir placemen* 8ees

A2010

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Disini

sho)l+ ha,e recei,e+ *he ori-inal con*rac*e+ salary o8 .:R3I0?mon*h ins*ea+ o8 *he new ra*e -i,en by :AAD I* was also no*e+ *ha* respon+en* +i+ no* re8)*e pe*i*ionerEs alle-a*ion re-ar+in- *he non-paymen* o8 placemen* an+ o*her processin8ees prior *o +eploymen* /he labor arbi*er also 8o)n+ *ha* *here is no +i88eren*ial as 8ar as respon+en*Es o,er*ime pay is concerne+ consi+erin- *ha* he was -i,en o,er*ime pay base+ on *he new ra*e o8 :% 600 00 :ince respon+en* ren+ere+ one ho)r o8 o,er*ime work per +ay 8or only 16 mon*hs, an+ no* *he en*ire 2A mon*hs as claime+, *he *o*al o,er*ime pay he recei,e+ is more or less e=)i,alen* *o *he amo)n* he o)-h* *o ha,e recei,e+ i8 *he ori-inal con*rac*e+ ra*e o8 .:R3I0 00 was )se+ Finally, *he labor arbi*er awar+e+ respon+en* a**orneyEs 8ees e=)i,alen* *o 10P o8 *he *o*al <)+-men* awar+ 8or beincompelle+ *o hire a co)nsel *o pro*ec* his ri-h*s an+ in*eres*s - ;L%C se* asi+e *he +ecision CA se* asi+e ;L%CEs +ecision an+ a88irme+ Labor Arbi*er ISSUES 13; respon+en* has a ri-h* *o *he money claims HELD &$: Ratio % A ;o 60A2 e(plici*ly prohibi*s *he s)bs*i*)*ion or al*era*ion *o *he pre<)+ice o8 *he worker, o8 employmen* con*rac*s alrea+y appro,e+ an+ ,eri8ie+ by *he Depar*men* o8 Labor an+ $mploymen* !D3L$' 8rom *he *ime o8 ac*)al si-nin*hereo8 by *he par*ies )p *o an+ incl)+in- *he perio+ o8 *he e(pira*ion o8 *he same wi*ho)* *he appro,al o8 *he D3L$ Reasoning - /he )na)*hori4e+ al*era*ion in *he employmen* con*rac* o8 respon+en*, par*ic)larly *he +imin)*ion in his salary 8rom .:R3I0 00 *o :% 600 00 per mon*h, is ,oi+ 8or ,iola*in- *he P3$A-appro,e+ con*rac* which se* *he minim)m s*an+ar+s, *erms, an+ con+i*ions o8 his employmen* - "oreo,er, we 8in+ *ha* *here was no proper +ismissal o8 respon+en* by :AAD@ *he 9*ermina*ion9 o8 respon+en* was clearly a ploy *o press)re him *o a-ree *o a lower wa-e ra*e 8or con*in)e+ employmen* /h)s, *he ori-inal P3$A-appro,e+ employmen* con*rac* o8 respon+en* s)bsis*s +espi*e *he socalle+ new a-reemen* wi*h :AAD Conse=)en*ly, *he soli+ary liabili*y o8 pe*i*ioner wi*h :AAD 8or respon+en*Es money claims con*in)es in accor+ance wi*h :ec*ion 10 o8 % A 60A2 - As *o pe*i*ionerEs claim *ha* respon+en* was barre+ by laches, respon+en* 8ile+ his claim wi*hin *he *hree-year prescrip*i,e perio+ 8or *he 8ilin- o8 money claims se* 8or*h in Ar*icle 291 o8 *he Labor Co+e 8rom *he *ime *he ca)se o8 ac*ion accr)e+ /h)s, we 8in+ *ha* *he +oc*rine o8 laches 8in+s no applica*ion in *his case - /he labor arbi*er an+ *he CA +i+ no* err in awar+in- a**orneyEs 8ees *o respon+en* I* is se**le+ *ha* in ac*ions 8or reco,ery o8 wa-es or where an employee was 8orce+ *o li*i-a*e an+ inc)r e(penses *o pro*ec* his ri-h*s an+ in*eres*s, he is en*i*le+ *o an awar+ o8 a**orneyEs 8ees Gowe,er, wi*h re-ar+ *o .na)*hori4e+ De+)c*ions amo)n*in- *o P1I1,I60 00@ we no*e *ha* *he appella*e co)r* +i+ no* s*a*e any basis 8or i*s awar+, *h)s, *he same is +ele*e+ 8or lack o8 8ac*)al an+ le-al basis Disposition Ins*an* pe*i*ion is PA%/L& 0%A;/$D /he Decision o8 *he Co)r* o8 Appeals in CA-0 % :P ;o II1AH +a*e+ :ep*ember 2I, 200H is AFFI%"$D wi*h "3DIFICA/I3; *ha* *he amo)n* o8 P1I1,I60 represen*in- .na)*hori4e+ De+)c*ions is D$L$/$D 8or lack o8 basis

PLACEWELL INTERNATIONAL SERVICES V CAMOTE 492 SCRA $61 4NARES+SAN*IAGO; 5 7' 26, 2006
NATURE Pe*i*ion 8or cer*iorari o8 *he :ep*ember 2I, 200H Decision o8 *he CA in CA-0 % :P ;o II1AH, which se* asi+e *he ;o,ember 20, 2002 %esol)*ion o8 *he ;L%C an+ reins*a*e+ wi*h mo+i8ica*ions *he "ay 31, 2002 Decision o8 Labor Arbi*er Ar*)ro L 0amolo FACTS - 3n A)-)s* 1H, 1999, pe*i*ioner +eploye+ respon+en* *o work as b)il+in- carpen*er 8or :AAD /ra+in- an+ Con*rac*in- Co !:AAD' a* *he Kin-+om o8 :a)+i Arabia !K:A' 8or a 2 yr con*rac* wi*h a salary o8 .:R3I0?mon*h - A* *he <ob si*e, respon+en* was alle-e+ly 8o)n+ incompe*en* by his 8orei-n employer@ *h)s *he la**er +eci+e+ *o *ermina*e his ser,ices Gowe,er, respon+en* plea+e+ 8or his re*en*ion an+ consen*e+ *o accep* a lower salary o8 :% 600 00 per mon*h /h)s, :AAD re*aine+ respon+en* )n*il his re*)rn *o *he Philippines *wo years a8*er - 3n ;o,ember 2I, 2001, respon+en* 8ile+ a complain* 8or money claims a-ains* pe*i*ioner alle-in- *ha* when he arri,e+ a* *he <ob si*e, he an+ his 8ellow Filipino workers were re=)ire+ *o si-n ano*her employmen* con*rac* wri**en in Arabic )n+er *he cons*rain*s o8 losin- *heir <obs i8 *hey re8)se+@ *ha* 8or *he en*ire +)ra*ion o8 *he new con*rac*, he recei,e+ only :% H90 00 per mon*h@ *ha* he was no* -i,en his o,er*ime pay +espi*e workin- 9hrs?+ay@ *ha* he an+ his co-workers so)-h* assis*ance 8rom *he Philippine $mbassy b)* *hey +i+ no* s)ccee+ in p)rs)in- *heir ca)se o8 ac*ion beca)se o8 +i88ic)l*ies in comm)nica*ion - 3n "ay 31, 2002, *he labor arbi*er ren+ere+ a +ecision hol+in- *ha* *he mo+i8ica*ion o8 respon+en*Es employmen* con*rac* is no* allowe+ )n+er :ec*ion 10 o8 % A 60A2@ *h)s, he

SECTION B ALIEN EMPLOYMENT 5.0. CO>ERA2E

NON-RESIDENT ALIEN
ALMODIEL V NLRC (RAYTHEON PHILS INC)

Labor Law 1
220 SCRA 041 NOCON; 5 7' 14, 1990
NATURE Pe*i*ion 8or cer*iorari o8 an ;L%C +ecision which se* asi+e *he Labor Arbi*erEs +ecision an+ or+ere+ ins*ea+ *he paymen* o8 separa*ion pay an+ 8inancial assis*ance FACTS - Pe*i*ioner Almo+iel is a CPA, was a Cos* Acco)n*in- "ana-er o8 respon+en* %ay*heon Philippines Gis ma<or +)*ies were> !1' plan, coor+ina*e, carry o)* year an+ physical in,en*ory@ !2' 8orm)la*e an+ iss)e o)* har+ copies o8 :*an+ar+ Pro+)c* cos*in- an+ o*her cos*?pricin- analysis i8 nee+e+ an+ !3' se* )p *he wri**en Cos* Acco)n*in- :ys*em 8or *he whole company - /he s*an+ar+ cos* acco)n*in- sys*em was ins*alle+ an+ )se+ a* *he %ay*heon plan*s an+ s)bsi+iaries worl+wi+e As a conse=)ence, *he ser,ices o8 a Cos* Acco)n*in- "ana-er alle-e+ly en*aile+ only *he s)bmission o8 perio+ic repor*s *ha* wo)l+ )se comp)*eri4e+ 8orms prescribe+ an+ +esi-ne+ by *he in*erna*ional hea+ o88ice in Cali8ornia - La*er, Almo+iel was s)mmone+ *ol+ o8 *he aboli*ion o8 his posi*ion on *he -ro)n+ o8 re+)n+ancy - Almo+iel *h)s 8ile+ *he complain* 8or ille-al +ismissal be8ore *he Arbi*ra*ion #ranch o8 ;C%, ;L%C - /he co)r* below 8o)n+ *ha* *he par*ies ha+ no arri,e+ a* a +e8ini*e )n+ers*an+inLabor Arbi*er ren+ere+ <)+-men* in 8a,or o8 Almo+iel, 8in+in*ha* *he -ro)n+ o8 re+)n+ancy was hi-hly irre-)lar an+ wi*ho)* le-al an+ 8ac*)al basis, or+erin- *he respon+en*s *o reins*a*e complainan*, wi*h 8)ll backwa-es, an+ moral an+ e(emplary +ama-es - ;L%C re,erse+ *he +ecision, an+ ins*ea+ merely or+ere+ %ay*heon *o pay P100,000 separa*ion pay?8inancial assis*ance - Pe*i*ioner *h)s 8ile+ *his pe*i*ion> /he p)blic respon+en* commi**e+ -ra,e ab)se o8 +iscre*ion amo)n*in- *o !lack o8' or in e(cess o8 <)ris+ic*ion in +eclarin- as ,ali+ an+ <)s*i8ie+ *he *ermina*ion o8 pe*i*ioner on *he -ro)n+ o8 re+)n+ancy in *he 8ace o8 clearly es*ablishe+ 8in+in- *ha* pe*i*ioner2s *ermina*ion was *ain*e+ wi*h malice, ba+ 8ai*h an+ irre-)lari*y - /ermina*ion o8 an employeeEs ser,ices beca)se o8 re+)n+ancy is -o,erne+ by Ar* 263 o8 *he Labor co+e> Ar* 263 Closure of establishment and reduction of personnel Q /he employer may also *ermina*e *he employmen* o8 any employee +)e *o ins*alla*ion o8 laborsa,in- +e,ices, re+)n+ancy, re*renchmen* *o pre,en* losses or *he closin- or cessa*ion o8 opera*ion o8 *he es*ablishmen* or )n+er*akin- )nless *he closin- is 8or *he p)rpose o8 circ)m,en*in- *he pro,isions o8 *his /i*le, by ser,in- a wri**en no*ice on *he worker an+ *he Depar*men* o8 Labor an+ $mploymen* a* leas* one !1' mon*h be8ore *he in*en+e+ +a*e *hereo8 In case o8 *ermina*ion +)e *o ins*alla*ion o8 laborsa,in- +e,ices or re+)n+ancy, *he worker a88ec*e+ *hereby shall be en*i*le+ *o a separa*ion pay e=)i,alen* *o a* leas* one !1' mon*h pay 8or e,ery year o8 ser,ice, whiche,er is hi-her In case o8 re*renchmen* *o pre,en* losses an+ in cases o8 clos)re or cessa*ion o8 opera*ions o8 es*ablishmen* or )n+er*akin- no* +)e *o serio)s b)siness losses or 8inancial re,erses, *he separa*ion pay shall be e=)i,alen* *o a* leas* one !1' mon*h pay or a* leas* one-hal8 !1?2' mon*h pay 8or e,ery year o8 ser,ice, whiche,er is hi-her A 8rac*ion o8 a* leas* si( !7' mon*hs shall be consi+ere+ as one !1' whole year ISSUE 13; ba+ 8ai*h, malice, an+ irre-)lari*y crep* in *he aboli*ion o8 pe*i*ionerEs posi*ion o8 Cos* Acco)n*in- "ana-er on *he -ro)n+ o8 re+)n+ancy, *h)s makin- *he +ismissal ille-al HELD ;3 Reasoning

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Disini

- /here simply wasnE* e,i+ence showin- *ha* *here was ba+ 8ai*h or malice or irre-)lari*y a* all - /he wis+om or so)n+ness o8 s)ch charac*eri4a*ion or +ecision was no* s)b<ec* *o +iscre*ionary re,iew on *he par* o8 *he Labor Arbi*er nor o8 *he ;L%C so lon-, o8 co)rse, as ,iola*ion o8 law or merely arbi*rary an+ malicio)s ac*ion is no* shown - I* is a well-se**le+ r)le *ha* labor laws +o no* a)*hori4e in*er8erence wi*h *he employer2s <)+-men* in *he con+)c* o8 his b)siness /he +e*ermina*ion o8 *he =)ali8ica*ion an+ 8i*ness o8 workers 8or hirin- an+ 8irin-, promo*ion or reassi-nmen* are e(cl)si,e prero-a*i,es o8 mana-emen* /he Labor Co+e an+ i*s implemen*in- %)les +o no* ,es* in *he Labor Arbi*ers nor in *he +i88eren* Di,isions o8 *he ;L%C !nor in *he co)r*s' mana-erial a)*hori*y /he employer is 8ree *o +e*ermine, )sin- his own +iscre*ion an+ b)siness <)+-men*, all elemen*s o8 employmen*, 98rom hirin- *o 8irin-9 e(cep* in cases o8 )nlaw8)l +iscrimina*ion or *hose which may be pro,i+e+ by law /here is none in *he ins*an* case Disposition Fin+in- no -ra,e ab)se o8 +iscre*ion on *he par* o8 *he ;a*ional Labor %ela*ions Commission in re,ersin- an+ ann)llin- *he +ecision o8 *he Labor Arbi*er an+ *ha* on *he con*rary, *he *ermina*ion o8 pe*i*ioner2s employmen* was anchore+ on a ,ali+ an+ a)*hori4e+ ca)se )n+er Ar*icle 263 o8 *he Labor Co+e, *he ins*an* pe*i*ion 8or certiorari m)s* 8ail ??? )e !%l, "a# #ele$a% ! )i( "a# !f )e !' li%e@ Likewise +es*i*)*e o8 meri* is pe*i*ioner2s imp)*a*ion o8 )nlaw8)l +iscrimina*ion when %ay*heon ca)se+ corollary 8)nc*ions apper*ainin- *o cos* acco)n*in- *o be absorbe+ by Danny An/an Chai, a resi+en* alien wi*ho)* a workin- permi* Ar*icle A0 o8 *he Labor Co+e which re=)ires employmen* permi* re8ers *o non-resi+en* aliens /he employmen* permi* is re=)ire+ 8or en*ry in*o *he co)n*ry 8or employmen* p)rposes an+ is iss)e+ a8*er +e*ermina*ion o8 *he non-a,ailabili*y o8 a person in *he Philippines who is compe*en*, able an+ willin- a* *he *ime o8 applica*ion *o per8orm *he ser,ices 8or which *he alien is +esire+ :ince An- /an Chai is a resi+en* alien, he +oes no* 8all wi*hin *he ambi* o8 *he pro,ision

5.06 TECHNI9UE RE2ULATION EMPLOYMENT PERMIT

AUT2ORITY EMPLOYMENT PERMIT = ISSUANCE
GENERAL MILLING CORP V TORRES

SECTION C EMPLOYMENT OF APPRENTICES. LEARNERS AND 2ANDICAPPED WORDERS 4.0. POLICY O/AECTI>ES
A APP%$;/IC$

4.06 APPRENTICE
REDUIREMENT PRO1RAM APPROVAL
NITTO ENTERPRISES V NLRC (CAPILI) 248 SCRA 654

Labor Law 1
:APUNAN; S'-#'3(') 29, 1995
FACTS - ;i**o $n*erprises, a company en-a-e+ in *he sale o8 -lass an+ al)min)m pro+)c*s, hire+ %ober*o Capili some*ime in "ay 1990 as an appren*ice machinis*, mol+er an+ core maker as e,i+ence+ by an appren*iceship a-reemen* 8or a perio+ o8 7 mon*hs 8rom "ay 26, 1990 *o ;o,ember 26, 1990 wi*h a +aily wa-e ra*e o8 P77 IH which was IHP o8 *he applicable minim)m wa-e - A* aro)n+ 1 pm o8 A)-)s* 2, 1990, Capili who was han+lin- a piece o8 -lass which he was workin- on, acci+en*ally hi* an+ in<)re+ *he le- o8 an o88ice secre*ary who was *rea*e+ a* a nearby hospi*al La*er *ha* same +ay, a8*er o88ice ho)rs, Capili en*ere+ a workshop wi*hin *he o88ice premises which was no* his work s*a*ion /here, he opera*e+ one o8 *he power press machines wi*ho)* a)*hori*y an+ in *he process in<)re+ his le8* *h)mb ;i**o $n*erprises spen* *he amo)n* o8 P1,023 0A *o co,er his me+ica*ion - /he 8ollowin- +ay, Capili was aske+ *o resi-n Mle**er was in /a-alo- an+ =)i*e lon- b)* basically narra*es *he e,en*s abo,e as -ro)n+s 8or +ismissalN 3n A)-)s* 3, 1990 he e(ec)*e+ a Y)i*claim an+ %elease in 8a,or o8 ;i**o $n*erprises in consi+era*ion o8 *he s)m o8 P1,912 I9 Capili 8ile+ a complain* 8or ille-al +ismissal an+ paymen* o8 o*her mone*ary bene8i*s - /he Labor Arbi*er 8o)n+ *he *ermina*ion ,ali+ an+ +ismisse+ *he money claim 8or lack o8 meri* ;i**o, howe,er was or+ere+ *o pay Capili *he amo)n* o8 PH00 as 8inancial assis*ance /he ;L%C re,erse+ an+ +eclare+ *ha* Capili was a re-)lar employee o8 ;i**o $n*erprises ISSUES 1 13; *he ;L%C commi**e+ -ra,e ab)se o8 +iscre*ion in hol+in- *ha* Capili was no* an appren*ice 2 13; *he ;L%C commi**e+ -ra,e ab)se o8 +iscre*ion in hol+in- *ha* ;i**o $n*erprises ha+ no* a+e=)a*ely pro,en *he e(is*ence o8 a ,ali+ ca)se in *ermina*in- *he ser,ice o8 Capili HELD 1 ;3 Ratio Prior appro,al by *he D3L$ o8 a propose+ appren*iceship pro-ram is a con+i*ion sine =)a non be8ore an appren*iceship a-reemen* can be ,ali+ly en*ere+ in*o Reasoning - /he ac* o8 8ilin- *he propose+ appren*iceship pro-ram wi*h *he Depar*men* o8 Labor an+ $mploymen* is a preliminary s*ep *owar+s i*s 8inal appro,al an+ +oes no* ins*an*aneo)sly -i,e rise *o an employer-appren*ice rela*ionship Ar*icle 71 o8 *he Labor Co+e pro,i+es> Con*en*s o8 appren*iceship a-reemen* - Appren*iceship a-reemen*s, incl)+in- *he main ra*es o8 appren*ices, shall con8orm *o *he r)les iss)e+ by *he "inis*er o8 Labor an+ $mploymen* /he perio+ o8 appren*iceship shall no* e(cee+ 7 mon*hs Appren*iceship a-reemen*s pro,i+in- 8or wa-e ra*es below *he le-al minim)m wa-e, which in no case shall s*ar* below IHP per cen* o8 *he applicable minim)m wa-e, may he en*ere+ in*o only in accor+ance wi*h appren8iceship pro-ram +)ly appro,e+ by *he "inis*er o8 Labor an+ $mploymen* /he "inis*ry shall +e,elop s*an+ar+ mo+el pro-rams o8 appren*iceship - /he appren*iceship a-reemen* be*ween ;i**o $n*erprises an+ Capili was e(ec)*e+ on "ay 26, 1990 alle-e+ly employin- *he la**er as an appren*ice in *he *ra+e o8 9core maker?mol+er 9 3n *he same +a*e, an appren*iceship pro-ram was prepare+ by pe*i*ioner an+ s)bmi**e+ *o *he D3L$ Gowe,er, *he appren*iceship a-reemen* was 8ile+ only on 5)ne I, 1990 ;o*wi*hs*an+in- *he absence o8 appro,al by *he D3L$ *he appren*iceship a-reemen* was en8orce+ *he +ay i* was si-ne+ ;i**o $n*erprises +i+ no* comply wi*h *he re=)iremen*s o8 *he law 2 ;3

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Disini

Ratio /he *win re=)iremen*s o8 +)e process, s)bs*an*i,e an+ proce+)ral, m)s* be complie+ wi*h, be8ore ,ali+ +ismissal e(is*s 1i*ho)* which, *he +ismissal becomes ,oi+ Reasoning - /his simply means *ha* *he employer shall a88or+ *he worker ample oppor*)ni*y *o be hear+ an+ *o +e8en+ himsel8 wi*h *he assis*ance o8 his represen*a*i,e, i8 he so +esires Ample oppor*)ni*y conno*es e,ery kin+ o8 assis*ance *ha* mana-emen* m)s* accor+ *he employee *o enable him *o prepare a+e=)a*ely 8or his +e8ense incl)+inle-al represen*a*ion - As hel+ in *he case o8 Pepsi-Cola #o**lin- Co , Inc , ;L%C> /he law re=)ires *ha* *he employer m)s* 8)rnish *he worker so)-h* *o be +ismisse+ wi*h 2 wri**en no*ices be8ore *ermina*ion can be le-ally e88ec*e+> !1' no*ice which apprises *he employee o8 *he par*ic)lar ac*s or omissions 8or which his +ismissal is so)-h*@ an+ !2' *he s)bse=)en* no*ice which in8orms *he employee o8 *he employer2s +ecision *o +ismiss him !:ec 13, #P 130@ :ec 2-7, %)le LIK, #ook K, %)les an+ %e-)la*ions Implemen*in- *he Labor Co+e as amen+e+' Fail)re *o comply wi*h *he re=)iremen*s *ain*s *he +ismissal wi*h ille-ali*y /his proce+)re is man+a*ory@ in *he absence o8 which, any <)+-men* reache+ by mana-emen* is ,oi+ an+ ine(is*en* - Capili 8ile+ a case o8 ille-al +ismissal wi*h *he Labor Arbi*er only 3 +ays a8*er he was ma+e *o si-n a Y)i*claim, a clear in+ica*ion *ha* s)ch resi-na*ion was no* ,ol)n*ary an+ +elibera*e Ge a,erre+ *ha* he was ac*)ally employe+ by pe*i*ioner as a +eli,ery boy !9kar-a+or9 or 9pahinan*e9' Ge 8)r*her asser*e+ *ha* pe*i*ioner 9s*ron--arme+9 him in*o si-nin*he resi-na*ion le**er an+ =)i*claim wi*ho)* e(plainin- *o him i*s con*en*s Pe*i*ioner ma+e i* clear *o him *ha* anyway, he +i+ no* ha,e a choice - ;i**o $n*erprises canno* +is-)ise *he s)mmary +ismissal o8 Capili by orches*ra*in- *he la**er2s alle-e+ resi-na*ion an+ s)bse=)en* e(ec)*ion o8 a Y)i*claim an+ %elease A <)+icio)s e(amina*ion o8 bo*h e,en*s belies any spon*anei*y on Capili2s par* Disposition Decision o8 *he ;L%C is AFFI%"$D

# L$A%;$%: C GA;DICAPP$D 13%K$%: RE1ULAR WORKER

BERNARDO V NLRC (FAR EAST BANK AND TRUST COMPANY) [PAGE 104]

SECTION E EMPLOYMENT WORK

CONDITIONS OF = 2OURS OF

5.0. HOURS RE2ULATION

RATIONALE AND ENFORCEMENT
MANILA TERMINAL CO INC V CIR

5.06 CO>ERA2E
RATIONALE E5EMPTION MANA1ERIAL EMPLOYEES =

Labor Law 1
PE%ARANDA V BAGANGA PLYWOOD CORP [PAGE 1] ASIA PACIFIC CHARTERING (PHILS) INC V FAROLAN 090 SCRA 454 CARPIO+MORALES; D'1'3(') 4, 2002
NATURE C$%/I3%A%I )n+er %)le AH o8 *he FACTS - Asia Paci8ic Char*erin- !Phils' Inc MAPCN was, )n*il 1997, *he -eneral sales a-en* !0:A' o8 *he :can+ina,ian Airline :ys*em !:A:', an o88-line in*erna*ional airline company wi*h license *o +o b)siness in *he Philippines - As 0:A, APC sol+ passen-er an+ car-o spaces 8or airlines opera*e+ by :A: - "aria Lin+a % Farolan was hire+ as :ales "ana-er o8 APC 8or i*s passen-er an+ car-o 0:A opera*ions 8or :A:, 8ollowin- her con8ormi*y *o a le**er-o88er o8 employmen* 8rom APC *hro)-h i*s Kice Presi+en*?Comp*roller Ca*alino #on+oc - In a repor* by Farolan, she in+ica*e+ *ha* *here was a +rop in :A:E sales re,en)es which *o her was a**rib)*able *o marke* 8orces beyon+ her con*rol - ;o*in- *he marke+ +ecline in :A:E sales re,en)es, APC +irec*e+ i*s hi-h rankin- o88icer %ober*o Oo4obra+o *o con+)c* an in,es*i-a*ion on *he ma**er an+ i+en*i8y *he problem?s an+ implemen* possible sol)*ions - Oo4obra+o *h)s in8ormally *ook o,er some o8 FA%3LA;Es marke*in- an+ sales responsibili*ies, albei* respon+en* re*aine+ her *i*le as :ales "ana-er an+ con*in)e+ *o recei,e her salary as s)ch - APC +)ai(e% t"at W Oo4obra+o 8o)n+ o)* *ha* FA%3LA; +i+ no* a+op* any sales s*ra*e-y nor con+)c* any sales mee*in- or +e,elop o*her so)rces o8 re,en)e 8or :A:, she ha,in- simply le* her sales s*a88 per8orm *heir 8)nc*ions all by *hemsel,es@ W In 199A, :oren 5espersen, 0" o8 :A: in Gon-kon-, :o)*hern China, /aipei an+ *he Philippines, came *o *he Philippines *o assess *he s*a*is*ics on :A:E sales re,en)es an+ :A: was con,ince+ *ha* FA%3LA; was no* 8i* 8or *he <ob o8 :ales "ana-er@ an+ in ,iew o8 *he chan-es in*ro+)ce+ by Oo4obra+o, :A:-0:A sales opera*ions +rew posi*i,e res)l*s - "ay 199A> 5espersen sen* a messa-e *o Farolan an+ Oo4obra+o con-ra*)la*in- *hem 8or *he increase in sales res)l*s an+ 8or e(cee+in- *he *ar-e* se* by H0P while 5)ne 199A> 5espersen sen* a ms- *o Farolan sayin- *ha* *he sales repor* 8or 5)ne 199A +i+ )n8or*)na*ely no* reach *ar-e* - 3n e,en +a*e, APC sen* respon+en* a le**er o8 *ermina*ion on *he -ro)n+ o8 9loss o8 con8i+ence 9 - /his spawne+ *he 8ilin- by FA%3LA; o8 a complain* 8or ille-al +ismissal a-ains* APC, #on+oc, Oo4obra+o an+ one Donal+ "arshall !*he recor+ in+ica*es *ha* he ha+ cease+ *o be connec*e+ wi*h pe*i*ioner when *he case was pen+in- be8ore *he Labor Arbi*er', wi*h prayer 8or +ama-es an+ a**orneyEs 8ees - In her complain* pe*i*ioner alle-e+ *ha* #on+oc an+ Oo4obra+o ha+ aske+ her *o *en+er her resi-na*ion as she was no* *he person whom :A: was lookin- 8or *o han+le *he posi*ion o8 :ales "ana-er b)* *ha* she re8)se+, hence, she was *ermina*e+ by *he le**er o8 5)ly 16, 199A le**er - LA> 8o)n+ 8or FA%3LA; *ha* APC +ismisse+ her wi*ho)* <)s* ca)se, e88ec*e+ wi*h malice, ill will an+ ba+ 8ai*h - NLRC> re,erse+ *he LAEs +ecision@ reco-ni4e+ *he ri-h* o8 APC as employer *o *ermina*e or +ismiss employees base+ on loss o8 *r)s* an+ con8i+ence, *he ri-h* bein- a mana-emen* prero-a*i,e - FarolanEs "% +enie+@ appeale+ *o CA - CA> re,erse+ *he ;L%C +ecision@ LAEs +ecision )phel+ wi*h mo+i8ica*ions ISSUE 13; FA%3LA;Es +ismissal was le-al

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HELD &$: Reasoning - %e=)isi*es 8or a ,ali+ +ismissal o8 an $"PL3&$$> !a' *he employee m)s* be a88or+e+ +)e process, i e , he m)s* be -i,en oppor*)ni*y *o be hear+ an+ *o +e8en+ himsel8@ an+ !b' +ismissal m)s* be 8or a ,ali+ ca)se as pro,i+e+ in Ar*icle 262 o8 *he Labor Co+e or any o8 *he a)*hori4e+ ca)ses )n+er Ar*icle 263 an+ 26A o8 *he same Co+e - A: %$0A%D: !A' /G$ LA F3.;D /GA/ FA%3LA; 1A: D$P%IK$D 3F D.$ P%3C$:: !*his was )phel+ by *he CA'> S1?3 any semblance o8, or wri**en a)*hori*y wha*soe,er, Oo4obra+o *ook o,er *he 8)nc*ions o8 complainan* Complainan* claims *ha* she has been *ol+ i* was )pon *he will o8 respon+en* "arshall *ha* she be replace+ #on+oc s)mmone+ Farolan an+ *ol+ her *o *en+er her resi-na*ion or 8ace *ermina*ion, which she re8)se+ *o +o /herea8*er, she was 8inally *ermina*e+, wi*ho)* bein- a88or+e+ *he oppor*)ni*y *o be hear+ an+ *o presen* e,i+ence in her +e8ense :he was ne,er -i,en a wri**en no*ice s*a*in- *he par*ic)lar ac*s or omission cons*i*)*in- *he -ro)n+s 8or her +ismissal as re=)ire+ by law - A: %$0A%D: !#'> *he r)le is se**le+ *ha* in *ermina*ion cases, *he employer bears *he on)s o8 pro,in- *ha* *he +ismissal is 8or <)s* ca)se 8ailin- which *he +ismissal is no* <)s*i8ie+ an+ *he employee is en*i*le+ *o reins*a*emen* 8PC0S C28' S1 - FA%3LA; 8aile+ *o li,e )p *o mana-emen*Es e(pec*a*ion in li-h* o8 her 8ail)re *o a+op* sales an+ marke*in- s*ra*e-ies *o increase sales re,en)es o8 :A:, which 8ail)re is re8lec*i,e o8 her incompe*ence an+ ine88iciency, *h)s res)l*in- *o loss o8 re,en)es in 1993 an+ 199A - Ga+ i* no* been *hro)-h Oo4obra+oEs e88or*s, :A: sales re,en)es co)l+ no* ha,e reco,ere+ - 5espersen was *he one who ini*ia*e+ *he *ermina*ion o8 respon+en* beca)se o8 her 9+ismal per8ormance9 in han+lin- i*s opera*ions - %ei*era*e+ *he principle *ha* *he ri-h* *o +ismiss a mana-erial employee is a meas)re o8 sel8-preser,a*ion@ Ci*e+ *he cases o8 0ran+ "o*or Par*s Corp , "inis*er o8 Labor e* al , an+ #)iser e* al , Le-ar+o T2E NATURE OF FAROLAN>S FO! AS SALES MANA1ER - I* is no* +isp)*e+ *ha* her <ob +escrip*ion, an+ *he *erms an+ con+i*ions o8 her employmen*, wi*h *he e(cep*ion o8 her salary an+ allowances, were ne,er re+)ce+ *o wri*in- %ecen* +ecisions o8 *his Co)r* +is*in-)ish *he *rea*men* o8 mana-erial employees 8rom *ha* o8 rank an+ 8ile personnel inso8ar as *he applica*ion o8 *he +oc*rine o8 loss o8 *r)s* an+ con8i+ence is concerne+ M/hus with respect to ran# and file personnel, loss of trust and confidence as ground for valid dismissal requires proof of involvement in the alleged events in question and that mere uncorroborated assertions and accusations by the employer will not be sufficient! =ut as regards a managerial employee, mere e&istence of a basis for believing that such employee has breached the trust of his employer would suffice for his dismissal!M - Sa+(!% $. NLRC@ BRULE FOR THIS CASECD E/ef!#e !%e +a, 0e "#!"e#l, &!%(ide#ed a +a%a:e#ial e+"l!,ee< all )e f!ll!8i%: &!%di i!%( +'( 0e +e @ B.D T)ei# "#i+a#, d' , &!%(i( ( !f )e +a%a:e+e% !f )e e( a0li()+e% i% 8)i&) )e, a#e e+"l!,ed !# !f a de"a# +e% !# ('0di$i(i!% )e#e!fF B6D T)e, &'( !+a#il, a%d #e:'la#l, di#e& )e 8!#= !f 8! !# +!#e e+"l!,ee( )e#ei%F B5D T)e, )a$e )e a' )!#i , ! )i#e !# fi#e ! )e# e+"l!,ee( !f l!8e# #a%=F !# )ei# ('::e( i!%( a%d #e&!++e%da i!%( a( ! )e )i#i%: a%d fi#i%: a%d a( ! )e "#!+! i!% !# a%, ! )e# &)a%:e !f ( a '( !f ! )e# e+"l!,ee( a#e :i$e% "a# i&'la# 8ei:) . BSe& i!% 6B0D< R'le I< /!!= III !f )e O+%i0'( R'le( I+"le+e% i%: )e La0!# C!de< e+")a(i( ('""liedD.

Labor Law 1
- FA%3LA;E: 53#> +eal* mainly wi*h ser,icin- o8 e(is*inclien*ele #on+oc, howe,er, +escribe+ respon+en*Es 8)nc*ions an+ +)*ies as cri*ical - Pa"e# I%d'( #ie( C!#". !f )e P)ili""i%e( $. La:'e(+a> 9"ana-erial employees are ranke+ as /op "ana-ers, "i++le "ana-ers an+ Firs* Line "ana-ers /he mere 8ac* *ha* an employee is +esi-na*e+ 9mana-er9 +oes no* ipso 8ac*o make him one-+esi-na*ion sho)l+ be reconcile+ wi*h *he ac*)al <ob +escrip*ion o8 *he employee 8or i* is *he <ob +escrip*ion *ha* +e*ermines *he na*)re o8 employmen* 9 - Dismissal on *he -ro)n+ o8 9loss o8 con8i+ence9 sho)l+ ha,e a basis an+ +e*ermina*ion canno* be le8* en*irely *o *he employer -Loss o8 *r)s* an+ con8i+ence *o be a ,ali+ -ro)n+ 8or an employeeEs +ismissal m)s* be base+ on a will8)l breach an+ 8o)n+e+ on clearly es*ablishe+ 8ac*s - A breach is will8)l i8 i* is +one in*en*ionally, knowin-ly an+ p)rposely, wi*ho)* <)s*i8iable e(c)se, as +is*in-)ishe+ 8rom an ac* +one carelessly, *ho)-h*lessly, hee+lessly or ina+,er*en*ly - /he *wo le**ers sen* by :A: *o respon+en* in 199A in 8ac* ne-a*e will8)l breach o8 her +)*ies by respon+en* - 1hile APC a**rib)*e+ *he impro,emen* o8 sales in 199A *o Oo4obra+o, *he 8ac* remains *ha* FA%3LA; was s*ill *he :ales "ana-er )p *o 5)ly 199A, in char-e o8 *hose 9sales mee*in-s9 +)rin- which per*inen* marke* s*ra*e-ies were +e,elope+ an+ )*ili4e+ *o increase sales - /he 0ran+ "o*ors case ci*e+ by APC, howe,er, in,ol,e+ a proba*ionary employee-mana-er who 8aile+ *o, amon- o*her *hin-s, s)bmi* re=)ire+ mon*hly repor*s an+ ,iola*e+ company policy, clearly mirrorin- his ins)bor+ina*ion an+ +isrespec* *o e(press ins*r)c*ions o8 mana-emen* - In *he #)iser case> 9M8Nail)re *o obser,e prescribe+ s*an+ar+s o8 work, or *o 8)l8ill reasonable work assi-nmen*s +)e *o ine88iciency9 may be <)s* ca)se 8or +ismissal, pe*i*ioner has nei*her shown wha* s*an+ar+s o8 work or reasonable work assi-nmen*s were prescribe+ which respon+en* 8aile+ *o obser,e nor *ha* i8 she +i+ 8ail *o obser,e any s)ch, i* was +)e *o ine88iciency -'t bears noting that there is no showing that respondent represented herself as possessed of the highest degree of s#ill and care #nown in the trade! $ FA%3LA; was *he one approache+ or o88ere+ *he <ob@ :he *h)s co)l+ no* <)s* be )nceremonio)sly +ischar-e+ 8or 9loss o8 con8i+ence9 arisin- 8rom alle-e+ incompe*ency - E3)ile a% e+"l!,ee +a, 0e di(+i((ed 0e&a'(e !f i%effi&ie%&,< %e:le& !# &a#ele((%e((< )e la8 i+"lie( a (i 'a i!% !# '%de# a=i%: 0, a% e+"l!,ee i% e% e#i%: i% ! a &!% #a& !f e+"l!,+e% )a )e i( &!+"e e% ! "e#f!#+ )e 8!#= '%de# a=e% a%d i( "!((e((ed !f )e #eG'i(i e (=ill a%d =%!8led:e ! e%a0le )i+ ! d! (!< a%d )a )e 8ill d! )e 8!#= !f )e e+"l!,e# i% a &a#ef'l +a%%e#. If )e i( %! G'alified ! d! )e 8!#= 8)i&) )e '%de# a=e(< if )e i( i%&!+"e e% < '%(=illf'l !# i%effi&ie% < !# if )e eHe&' e( )i( 8!#= i% a %e:li:e% +a%%e# !# i( ! )e#8i(e :'il , !f %e:le& !f d' ,< )e +a, la8f'll, 0e di(&)a#:ed 0ef!#e )e eH"i#a i!% !f )i( e#+ !f e+"l!,+e% .E DAMA2ES@ - A: FA%3LA; was ins*r)c*e+ *o resi-n or be *ermina*e+, she was +epri,e+ o8 +)e process an+ +enie+ 9basic precep*s o8 8airness9 when she was *ermina*e+ Ger res)l*an* s)88erin-s *h)s en*i*le her *o an awar+ o8 moral +ama-es - Awar+ o8 moral an+ e(emplary +ama-es 8or an ille-ally +ismisse+ employee is proper where *he employee ha+ been harasse+ an+ arbi*rarily *ermina*e+ by *he employer -In +e*erminin- *he amo)n* o8 moral +ama-es reco,erable, howe,er, *he b)siness, social an+ 8inancial posi*ion o8 *he o88en+e+ par*y an+ *he b)siness or 8inancial posi*ion o8 *he o88en+er are *aken in*o acco)n* Disposition CAE: +ecision is AFFI%"$D wi*h *he "3DIFICA/I3; *ha* *he amo)n* o8 moral +ama-es an+ e(emplary +ama-es awar+e+ *o Farolan is hereby re+)ce+ *o PH00,000 00 Pesos an+ P2H0,000 00, respec*i,ely

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NATIONAL WATERWORKS & SEWERAGE AUTHORITY V NWSA CONSOLIDATED UNIONS 11 SCRA $66 BAU*IS*A ANGELO; A ! "# 01, 1964
NATURE Pe*i*ion 8or re,iew o8 a +ecision o8 *he Co)r* o8 In+)s*rial %ela*ions FACTS - Pe*i*ioner ;a*ional 1a*erworks U :ewera-e A)*hori*y is a -o,ernmen*-owne+ an+ con*rolle+ corpora*ion crea*e+ )n+er %ep)blic Ac* ;o 1363, while respon+en* ;1:A Consoli+a*e+ .nions are ,ario)s labor or-ani4a*ions compose+ o8 laborers an+ employees o8 *he ;A1A:A /he o*her respon+en*s are in*er,enors Cen*eno, e* al , hereina8*er re8erre+ *o as in*er,enors - Pe*i*ioner an+ respon+en* )nions, con8ormably *o a s)--es*ion o8 *he Co)r* o8 In+)s*rial %ela*ions on *he con*ro,ersy be*ween *hem, s)bmi**e+ a <oin* s*ip)la*ion o8 8ac*s on *he iss)es concernin- *he A0-Go)r 1eek Law, B+is*ress pay,D minim)m wa-e, 8illin- o8 ,acancies, ni-h* compensa*ion, an+ salary a+<)s*men*s, reser,in- *he ri-h* *o presen* e,i+ence on ma**ers no* co,ere+ herein %espon+en* in*er,enors 8ile+ a pe*i*ion in in*er,en*ion on *he iss)e 8or a++i*ional compensa*ion 8or ni-h*work La*er, howe,er, *hey amen+e+ *heir pe*i*ion by incl)+in- a new +eman+ 8or o,er*ime pay in 8a,or o8 Cen*eno an+ o*her employees recei,in- PA200 per ann)m or more - Pe*i*ioner 8ile+ a mo*ion *o +ismiss *he claim 8or o,er*ime pay alle-in- *ha* respon+en* Co)r* o8 In+)s*rial %ela*ions was wi*ho)* <)ris+ic*ion *o pass )pon *he same beca)se, as mere in*er,enors, *he la**er canno* raise new iss)es no* li*i-a*e+ in *he principal case, *he same no* bein- *he lis mota *herein in,ol,e+ /o *his mo*ion, *he in*er,enors 8ile+ an opposi*ion /herea8*er, respon+en* co)r* iss)e+ an or+er allowin- *he iss)e *o be li*i-a*e+ Pe*i*ionersEs mo*ion *o reconsi+er ha,in- been +enie+, i* 8ile+ i*s answer *o *he pe*i*ion 8or in*er,en*ion - Finally, respon+en* ren+ere+ i*s +ecision s*a*in- amon- o*hers *ha* !1' *he ;A1A:A is an a-ency no* per8ormin- -o,ernmen*al 8)nc*ions an+, *here8ore, is liable *o pay a++i*ional compensa*ion 8or work on :)n+ays an+ le-al holi+ays con8ormably *o Commonweal*h Ac* ;o AAA, known as *he $i-h*-Go)r Labor Law, e,en i8 sai+ +ays sho)l+ be wi*hin *he s*a--ere+ 8i,e work-+ays a)*hori4e+ by *he Presi+en* an+ !2' *he in*er,enors +o no* 8all wi*hin *he ca*e-ory o8 Bmana-erial employeesD as con*empla*e+ in %ep)blic Ac* 23II an+ so are no* e(emp* 8rom *he co,era-e o8 *he $i-h*-Go)r Labor Law@ e,en *hose in*er,enors a**ache+ *o *he 0eneral A)+i*in- 388ice an+ *he #)rea) o8 P)blic 1orks come wi*hin *he p)r,iew o8 Commonweal*h Ac* ;o AAA - I*s mo*ion 8or reconsi+era*ion ha,in- been +enie+, ;A1A:A 8ile+ *he presen* pe*i*ion 8or re,iew ISSUE 13; *he in*er,enors are Bmana-erial employeesD wi*hin *he meanin- o8 %ep)blic Ac* 23II an+, *here8ore, no* en*i*le+ *o *he bene8i*s o8 Commonweal*h Ac* ;o AAA, as amen+e+ HELD ;3 - 3ne o8 *he +is*in-)ishin- charac*eris*ics by which a mana-erial employee may be known as e(presse+ in *he e(plana*ory no*e o8 %ep)blic Ac* 23II is *ha* he is no* s)b<ec* *o *he ri-i+ obser,ance o8 re-)lar o88ice ho)rs /he *r)e wor*h o8 his ser,ice +oes no* +epen+ so m)ch on *he *ime he spen+s in o88ice b)* more on *he res)l*s he accomplishes In 8ac*, he is 8ree *o -o o)* o8 o88ice any*ime - :ec*ion 2 o8 %ep)blic Ac* 23II pro,i+es> B:ec 2 /his Ac* shall apply *o all persons employe+ in any in+)s*ry or occ)pa*ion whe*her p)blic or pri,a*e, wi*h *he e(cep*ion o8 8arm laborers, laborers who pre8er *o be pai+ on piece work basis, mana-erial employees, o)*si+e sales personnel, +omes*ic ser,an*s, persons in *he personal ser,ice

Labor Law 1
o8 ano*her an+ members o8 *he 8amily o8 *he employer workin- 8or him B/he *erm \mana-erial employeeE in *his Ac* shall mean ei*her !a' any person whose primary +)*y consis*s o8 *he mana-emen* o8 *he es*ablishmen* in which he is employe+ or o8 a c)s*omarily reco-ni4e+ +epar*men* or s)b+i,ision *hereo8, or !b' any o88icer or member o8 *he mana-erial s*a88 D - /he philosophy behin+ *he e(emp*ion o8 mana-erial employees 8rom *he 6-Go)r Labor Law is *ha* s)ch workers are no* )s)ally employe+ 8or e,ery ho)r o8 work b)* *heir compensa*ion is +e*ermine+ consi+erin- *heir special *rainin-, e(perience, or knowle+-e which re=)ires *he e(ercise o8 +iscre*ion an+ in+epen+en* <)+-men*, or per8orm work rela*e+ *o mana-emen* policies or -eneral work rela*e+ *o mana-emen* policies or -eneral b)siness opera*ions alonspeciali4e+ or *echnical lines For *hese workers i* is no* 8easible *o pro,i+e a 8i(e+ ho)rly ra*e o8 pay or ma(im)m ho)rs o8 labor - /he in*er,enors herein are hol+in- posi*ions o8 responsibili*y 3ne o8 *hem is *he :ecre*ary o8 *he #oar+ o8 Direc*ors Ano*her is *he pri,a*e secre*ary o8 *he -eneral mana-er Ano*her is a p)blic rela*ions o88icer, an+ many o*her chie8s o8 +i,isions or sec*ions an+ o*hers are s)per,isors an+ o,erseers %espon+en* co)r*, howe,er, a8*er e(aminin- care8)lly *heir respec*i,e 8)nc*ions, +)*ies, an+ responsibili*ies 8o)n+ *ha* *heir primary +)*ies +o no* bear any +irec* rela*ion wi*h *he mana-emen* o8 *he ;A1A:A, nor +o *hey par*icipa*e in *he 8orm)la*ion o8 i*s policies nor in *he hirin- an+ 8irin- o8 i*s employees /he chie8s o8 +i,isions an+ sec*ions are -i,en rea+y policies *o e(ec)*e an+ s*an+ar+ policies *o obser,e 8or *heir e(ec)*ion Gence, i* concl)+es, *hey ha,e li**le 8ree+om o8 ac*ion, as *heir main 8)nc*ion is merely *o carry o)* *he companyEs or+ers, plans, an+ policies - /o *he 8ore-oin- commen*, *he Co)r* a-rees As a ma**er o8 8ac*, *hey are re=)ire+ *o obser,e workin- ho)rs an+ recor+ *heir *ime work an+ are no* 8ree *o come an+ -o *o *heir o88ices, nor mo,e abo)* a* *heir own +iscre*ion /hey +o no*, *here8ore, come wi*hin *he ca*e-ory o8 Bmana-erial employeesD wi*hin *he meanin- o8 *he law Disposition Decision a88irme+ wi*h mo+i8ica*ion

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*ol+ him *ha* i8 *here were +isa-reemen*s, *hey sho)l+ be han+le+ in a pro8essional manner 2 ;3 - #e8ore one may be properly consi+ere+ a mana-erial employee, all *he 8ollowin- con+i*ions m)s* be me*> !1' /heir primary +)*y consis*s o8 *he mana-emen* o8 *he es*ablishmen* in which *hey are employe+ or o8 a +epar*men* or s)b-+i,ision *hereo8@ !2' /hey c)s*omarily an+ re-)larly +irec* *he work o8 *wo or more employees *herein@ !3' /hey ha,e *he a)*hori*y *o hire or 8ire o*her employees o8 lower rank@ or *heir s)--es*ions an+ recommen+a*ions as *o *he hirin- an+ 8irin- an+ as *o *he promo*ion or any o*her chan-e o8 s*a*)s o8 o*her employees are -i,en par*ic)lar wei-h* - Al*ho)-h his posi*ion is a Dis*ric* :ales "ana-er, his <ob +escrip*ion +o no* mee* *he abo,e con+i*ions 8or him *o be consi+ere+ a mana-erial employee - 6ranting he was a managerial employee, loss o8 con8i+ence as a -ro)n+ 8or *ermina*ion is s*ill wi*ho)* basis Loss o8 *r)s* an+ con8i+ence *o be a ,ali+ -ro)n+ 8or an employee2s +ismissal m)s* be clearly es*ablishe+ A breach is will8)l i8 i* is +one in*en*ionally, knowin-ly an+ p)rposely, wi*ho)* <)s*i8iable e(c)se, as +is*in-)ishe+ 8rom an ac* +one carelessly, *ho)-h*lessly, hee+lessly or ina+,er*en*ly I* m)s* res* on s)bs*an*ial -ro)n+s an+ no* on *he employer2s arbi*rariness, whims, caprices or s)spicion, o*herwise, *he employee wo)l+ remain a* *he mercy o8 *he employer 1hen pe*i*ioner ma+e *he o88ensi,e )**erances, i* can be sai+ *ha* he merely ac*e+ carelessly, *ho)-h*lessly or hee+lessly an+ no* in*en*ionally, knowin-ly, p)rposely, or wi*ho)* <)s*i8iable e(c)se Disposition Pe*i*ion -ran*e+ ;L%C re,erse+ an+ se* asi+e Pe*i*ioner is *h)s en*i*le+ *o reins*a*emen* *o his posi*ion as Dis*ric* :ales "ana-er, )nless s)ch posi*ion no lon-er e(is*s, in which case he shall be -i,en a s)bs*an*ially e=)i,alen* posi*ion wi*ho)* loss o8 seniori*y ri-h*s Ge is likewise en*i*le+ *o *he paymen* o8 his 8)ll backwa-es

TESTS- FIELD PERSONNEL

UNION OF FILIPRO EMPLOYEES V VIVAR 205 SCRA 200 GU*IERRE, 5R; 5a7 a)y 20, 1992
FACTS - Filipro, Inc !now ;es*le Philippines, Inc ' 8ile+ wi*h *he ;a*ional Labor %ela*ions Commission !;L%C' a pe*i*ion 8or +eclara*ory relie8 seekin- a r)lin- on i*s ri-h*s an+ obli-a*ions respec*inclaims o8 i*s mon*hly pai+ employees 8or holi+ay pay - Filipro 8ile+ a mo*ion 8or clari8ica*ion seekin- !1' *he limi*a*ion o8 *he awar+ *o *hree years, !2' *he e(cl)sion o8 salesmen, sales represen*a*i,es, *r)ck +ri,ers, merchan+isers an+ me+ical represen*a*i,es !hereina8*er re8erre+ *o as sales personnel' 8rom *he awar+ o8 *he holi+ay pay@ an+ !3' +e+)c*ion 8rom *he holi+ay pay awar+ o8 o,erpaymen* 8or o,er*ime, ni-h* +i88eren*ial, ,aca*ion an+ sick lea,e bene8i*s +)e *o *he )se o8 2H1 +i,isor - /he respon+en* arbi*ra*or iss)e+ an or+er +eclarin- *ha* *he e88ec*i,i*y o8 *he holi+ay pay awar+ shall re*roac* *o ;o,ember 1, 19IA, *he +a*e o8 e88ec*i,i*y o8 *he Labor Co+e Ge a+<)+-e+, howe,er, *ha* *he company2s sales personnel are 8iel+ personnel an+, as s)ch, are no* en*i*le+ *o holi+ay pay Ge likewise r)le+ *ha* wi*h *he -ran* o8 10 +ays2 holi+ay pay, *he +i,isor sho)l+ be chan-e+ 8rom 2H1 *o 271 an+ or+ere+ *he reimb)rsemen* o8 o,erpaymen* 8or o,er*ime, ni-h* +i88eren*ial, ,aca*ion an+ sick lea,e pay +)e *o *he )se o8 2H1 +ays as +i,isor ISSUES 1 13; ;es*le2s sales personnel are en*i*le+ *o holi+ay pay

SAMSON V NLRC (SCHERING-PLOUGH CORP) 000 SCRA 460 :APUNAN; A-)./ 12, 2000
FACTS - :amson was a Dis*ric* :ales "ana-er a* :PC D)rin- *he 1993 Chris*mas par*y, he sai+ obscene, o88ensi,e an+ ins)l*in- wor+s *owar+s *he mana-emen* an+ *he presi+en* in8ron* o8 o*her employees 3n 5an 2H 199A, he was -i,en a le**er which en)mera*e+ con+)c* inimical *o :PC Ge was -i,en 2 +ays *o e(plain Ge replie+ on *he same +ay, sayin- *ha* i* was an in8ormal e,en* an+ *ha* he was *ipsy an+ +enyin- *he acc)sa*ions Ge was pre,en*i,ely s)spen+e+ *ha* same +ay Ge was *ermina*e+ on Feb 3 199A, 8or loss o8 con8i+ence Ge 8ile+ complain* 8or ille-al +ismissal LA +eci+e+ in his 8a,or ;L%C re,erse+ beca)se i* 8o)n+ *ha* his -ross miscon+)c* warran*e+ *ermina*ion ;L%C also sai+ *ha* in *ermina*in- *he employmen* o8 mana-erial employees, *he employer is allowe+ a wi+er la*i*)+e o8 +iscre*ion *han in *he case o8 or+inary rank-an+-8ile ISSUES 1 13; *ermina*ion was warran*e+ 2 13; pe*i*ioner is mana-erial employee HELD 1 ;3 - /he *ermina*ion was ille-al /he companyEs co+e o8 con+)c* p)nishes s)ch miscon+)c* by a ,erbal warnin- 8or a 8irs* o88ense /here was no +emorali4a*ion amon- *he ranks, or a* leas* *he beha,ior o8 *he company +oesnE* show )r-ency --- he was -i,en a le**er weeks a8*er *he e,en* occ)rre+ Also, a* a mee*in- on 5an 3 199A, *he presi+en* himsel8 ci,illy an+ calmly

Labor Law 1
2 13; concomi*an* wi*h *he awar+ o8 holi+ay pay, *he +i,isor sho)l+ be chan-e+ 8rom 2H1 *o 271 +ays an+ 13; *he pre,io)s )se o8 2H1 as +i,isor res)l*e+ in o,erpaymen* 8or o,er*ime, ni-h* +i88eren*ial, ,aca*ion an+ sick lea,e pay HELD 1 ;3 - .n+er Ar*icle 62, 8iel+ personnel are no* en*i*le+ *o holi+ay pay :ai+ ar*icle +e8ines 8iel+ personnel as 9non-a-ric)l*)ral employees who re-)larly per8orm *heir +)*ies away 8rom *he principal place o8 b)siness or branch o88ice o8 *he employer an+ whose ac*)al ho)rs o8 work in *he 8iel+ canno* be +e*ermine+ wi*h reasonable cer*ain*y 9 - /he con*ro,ersy cen*ers on *he in*erpre*a*ion o8 *he cla)se 9whose ac*)al ho)rs o8 work in *he 8iel+ canno* be +e*ermine+ wi*h reasonable cer*ain*y 9 /he :C conc)rs wi*h *he 8ollowin+is=)isi*ion by *he respon+en* arbi*ra*or> - 9/he re=)iremen* 8or *he salesmen an+ o*her similarly si*)a*e+ employees *o repor* 8or work a* *he o88ice a* 6>00 a m an+ re*)rn a* A>00 or A>30 p m is no* wi*hin *he realm o8 work in *he 8iel+ as +e8ine+ in *he Co+e b)* an e(ercise o8 p)rely mana-emen* prero-a*i,e o8 pro,i+in- a+minis*ra*i,e con*rol o,er s)ch personnel /his +oes no* in any manner pro,i+e a reasonable le,el o8 +e*ermina*ion on *he ac*)al 8iel+ work o8 *he employees which can be reasonably ascer*aine+ /he *heore*ical analysis *ha* salesmen an+ o*her similarly-si*)a*e+ workers re-)larly repor* 8or work a* 6>00 a m an+ re*)rn *o *heir home s*a*ion a* A>00 or A>30 p m , crea*in- *he ass)mp*ion *ha* *heir 8iel+ work is s)per,ise+, is s)r8ace pro<ec*ion Ac*)al 8iel+ work be-ins a8*er 6>00 a m when *he sales personnel 8ollow *heir 8iel+ i*inerary, an+ en+s imme+ia*ely be8ore A>00 or A>30 p m when *hey repor* back *o *heir o88ice /he perio+ be*ween 6>00 a m an+ A>00 or A>30 p m comprises *heir ho)rs o8 work in *he 8iel+, *he e(*en* or scope an+ res)l* o8 which are s)b<ec* *o *heir in+i,i+)al capaci*y an+ in+)s*ry an+ which 2canno* be +e*ermine+ wi*h reasonable cer*ain*y 2 /his is *he reason why e88ec*i,e s)per,ision o,er 8iel+ work o8 salesmen an+ me+ical represen*a*i,es, *r)ck +ri,ers an+ merchan+isers is prac*ically a physical impossibili*y Conse=)en*ly, *hey are e(cl)+e+ 8rom *he *en holi+ays wi*h pay awar+ 2 2 ;3 - /he +i,isor *o be )se+ is 2H1 /he respon+en* arbi*ra*or2s or+er *o chan-e *he +i,isor 8rom 2H1 *o 271 +ays wo)l+ res)l* in a lower +aily ra*e which is ,iola*i,e o8 *he prohibi*ion on non+imin)*ion o8 bene8i*s 8o)n+ in Ar*icle 100 o8 *he Labor Co+e /he Co)r* resol,es *ha* *he -ran* o8 holi+ay pay be e88ec*i,e, no* 8rom *he +a*e o8 prom)l-a*ion o8 *he Char*ere+ #ank case nor 8rom *he +a*e o8 e88ec*i,i*y o8 *he Labor Co+e, b)* 8rom 3c*ober 23, 196A, *he +a*e o8 prom)l-a*ion o8 *he I#AA case Disposition Decision o8 Labor Arbi*er is "3DIFI$D

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1 3n 17 April 1991, pe*i*ioner recei,e+ a memoran+)m iss)e+ by pri,a*e respon+en*Es pro<ec* mana-er, $n-r ;es*or A Delan*ar in8ormin- him o8 *he *ermina*ion o8 his ser,ices e88ec*i,e on 30 April 1991 - Pe*i*ioner 8ile+ a complain* a-ains* pri,a*e respon+en* 8or ille-al +ismissal, )n8air labor prac*ice, ille-al +e+)c*ion, nonpaymen* o8 wa-es, o,er*ime ren+ere+, ser,ice incen*i,e lea,e pay, commission, allowances, pro8i*-sharin- an+ separa*ion pay wi*h *he ;L%C - Labor Arbi*er %a)l / A=)ino +ismisse+ *he complain* 8or lack o8 meri* - ;L%C a88irme+, an+ also +enie+ "F% ISSUE 13; pe*i*ioner is en*i*le+ *o o,er*ime pay, premi)m pay 8or ser,ices ren+ere+ on res* +ays an+ holi+ays an+ ser,ice incen*i,e lea,e pay, p)rs)an* *o Ar*icles 6I, 93, 9A an+ 9H o8 *he Labor Co+e HELD ;3 - /he ;L%C conc)rre+ wi*h *he Labor Arbi*erEs r)lin- *ha* pe*i*ioner was a mana-erial employee an+, *here8ore, e(emp* 8rom paymen* o8 o,er*ime pay, premi)m pay 8or holi+ays an+ res* +ays an+ ser,ice incen*i,e lea,e pay )n+er *he law - Pe i i!%e# &lai+( )a (i%&e )e "e#f!#+( )i( d' ie( i% )e "#!*e& (i e !# a8a, f#!+ )e "#i%&i"al "la&e !f 0'(i%e(( !f )i( e+"l!,e#< )e fall( '%de# )e &a e:!#, !f Ifield "e#(!%%el.J - Gowe,er, pe*i*ioner accen*)a*es *ha* his case cons*i*)*es *he e(cep*ion *o *he e(cep*ion beca)se his ac*)al workin- ho)rs can be +e*ermine+ as e,i+ence+ by *he +isb)rsemen* ,o)chers con*ainin- paymen*s o8 pe*i*ionerEs salaries an+ o,er*ime ser,ices :*ran-ely, pe*i*ioner is o8 *he ,iew *ha* 8iel+ personnel may incl)+e mana-erial employees - In his ori-inal complain*, pe*i*ioner s*a*e+ *ha* *he na*)re o8 his work is Ds)per,isory-en-ineerin- D :imilarly, in his own pe*i*ion an+ in o*her plea+in-s, pe*i*ioner con8irme+ *ha* his <ob was *o s)per,ise *he laborers in *he cons*r)c*ion pro<ec* - Al )!':) "e i i!%e# &a%%! ( #i& l, 0e &la((ified a( a +a%a:e#ial e+"l!,ee '%de# A# . -6 !f )e La0!# C!de< a%d Se&. 6B0D< R'le .< /!!= III !f )e O+%i0'( R'le( I+"le+e% i%: )e La0!# C!de< %!%e )ele(( )e i( ( ill %! e% i led ! "a,+e% !f )e af!#e( a ed 0e%efi ( 0e&a'(e )e fall( (G'a#el, '%de# a%! )e# eHe+" &a e:!#, 1 I!ffi&e#( !# +e+0e#( !f a +a%a:e#ial ( affJ as +e8ine+ )n+er :ec 2!c'7 o8 *he abo,emen*ione+ implemen*in- r)les> - A case in poin* is (ational Sugar 3efineries Corporation v! (23C! 3n *he iss)e o8 Bwhe*her s)per,isory employees, as +e8ine+ in Ar*icle 212 !m', #ook K o8 *he Labor Co+e, sho)l+ be consi+ere+ as o88icers or members o8 *he mana-erial s*a88 )n+er Ar*icle 62, #ook III o8 *he same Co+e an+ hence no* en*i*le+ *o o,er*ime, res* +ay an+ holi+ay pay,D *his Co)r* r)le+> A c)rsory per)sal o8 *he 5ob Kal)e Con*rib)*ion :*a*emen*s o8 *he )nion members will rea+ily show *ha* *hese ('"e#$i(!#, e+"l!,ee( a#e '%de# )e di#e& ('"e#$i(i!% !f )ei# #e("e& i$e de"a# +e% ('"e#i% e%de% ( a%d )a :e%e#all, )e, a((i( )e la e# i% "la%%i%:< !#:a%iKi%:< ( affi%:< di#e& i%:< &!% #!lli%:< &!++'%i&a i%: a%d i% +a=i%: de&i(i!%( i% a ai%i%: )e &!+"a%,L( (e :!al( a%d
6

SALAZAR V NLRC (H. L. CARLOS CONSTRUCTION, CO INC) 256 SCRA 2$0 :APUNAN; A-)./ 1$, 1996
NATURE Pe*i*ion 8or cer*iorari *o ann)l *he +ecision o8 *he ;a*ional Labor %ela*ions Commission FACTS - 3n 1I April 1990, pri,a*e respon+en*, a* a mon*hly salary o8 PA,H00 00, employe+ pe*i*ioner as cons*r)c*ion?pro<ec* en-ineer 8or *he cons*r)c*ion o8 *he "on*e +e Pie+a+ b)il+in- in C)bao, Y)e4on Ci*y - Alle-e+ly, by ,ir*)e o8 an oral con*rac*, pe*i*ioner wo)l+ also recei,e a share in *he pro8i*s a8*er comple*ion o8 *he pro<ec* an+ *ha* pe*i*ionerEs ser,ices in e(cess o8 ei-h* !6' ho)rs on re-)lar +ays an+ ser,ices ren+ere+ on weeken+s an+ le-al holi+ays shall be compensable o,er*ime a* *he ra*e o8 P2I 6H per ho)r

:ec 2 >&emption! - /he pro,isions o8 *his %)le shall no* apply *o *he 8ollowin- persons i8 *hey =)ali8y 8or e(emp*ion )n+er *he con+i*ion se* 8or*h herein> !c' 388icers or members o8 a mana-erial s*a88 i8 *hey per8orm *he 8ollowin- +)*ies an+ responsibili*ies> !1' /he primary +)*y consis*s o8 *he per8ormance o8 work +irec*ly rela*e+ *o mana-emen* policies o8 *heir employer@ !2' C)s*omarily an+ re-)larly e(ercise +iscre*ion an+ in+epen+en* <)+-men*@ !3' MiN %e-)larly an+ +irec*ly assis* a proprie*or or a mana-erial employee whose primary +)*y consis*s o8 *he mana-emen* o8 *he es*ablishmen* in which he is employe+ or s)b+i,ision *hereo8@ or MiiN e(ec)*e )n+er -eneral s)per,ision work alon- speciali4e+ or *echnical lines re=)irinspecial *rainin-, e(perience, or knowle+-e@ or MiiiN e(ec)*e )n+er -eneral s)per,ision special assi-nmen*s an+ *asks@ an+ !A' who +o no* +e,o*e more *han 20 percen* o8 *heir ho)rs worke+ in a work-week *o ac*i,i*ies which are no* +irec*ly an+ closely rela*e+ *o *he per8ormance o8 *he work +escribe+ in para-raphs !1', !2', an+ !3' abo,e

Labor Law 1
!0*e& i$e(. T)e(e ('"e#$i(!#, e+"l!,ee( a#e li=e8i(e #e("!%(i0le f!# )e effe& i$e a%d effi&ie% !"e#a i!% !f )ei# #e("e& i$e de"a# +e% (. From *he 8ore-oin-, i* is apparen* *ha* *he members o8 respon+en* )nion di(&)a#:e d' ie( a%d #e("!%(i0ili ie( 8)i&) i%el'& a0l, G'alif, )e+ a( !ffi&e#( !# +e+0e#( !f )e +a%a:e#ial ( aff, as +e8ine+ in :ec*ion 2, %)le 1, #ook III o8 *he %)les *o Implemen* *he Labor Co+e - T)e (a+e a""lie( ! "e i i!%e# )e#ei% &!%(ide#i%: i% )e +ai% )i( ('"e#$i(!#, d' ie( a( "#i$a e1#e("!%de% L( "#!*e& e%:i%ee#< d' ie( 8)i&)< i i( (i:%ifi&a% ! %! e< "e i i!%e# d!e( %! di("' e. - Pe*i*ioner, likewise, claims *ha* *he ;L%C 8aile+ *o -i,e +)e wei-h* an+ consi+era*ion *o *he 8ac* *ha* pri,a*e respon+en* compensa*e+ him 8or his o,er*ime ser,ices as in+ica*e+ in *he ,ario)s +isb)rsemen* ,o)chers he s)bmi**e+ as e,i+ence - Pe*i*ionerEs con*en*ion is )nmeri*orio)s /ha* pe*i*ioner was pai+ o,er*ime bene8i*s +oes no* a)*oma*ically an+ necessarily +eno*e *ha* pe*i*ioner is entitled *o s)ch bene8i*s Ar* 62 o8 *he Labor Co+e speci8ically +elinea*es who are en*i*le+ *o *he o,er*ime premi)ms an+ ser,ice incen*i,e lea,e pay pro,i+e+ )n+er Ar* 6I, 93, 9A an+ 9H o8 *he Labor Co+e an+ *he e(emp*ions *here*o - As pre,io)sly +e*ermine+, pe*i*ioner 8alls )n+er *he e(emp*ions an+ *here8ore has no le-al claim *o *he sai+ bene8i*s I* is well an+ -oo+ *ha* pe*i*ioner was compensa*e+ 8or his o,er*ime ser,ices Gowe,er, *his +oes no* *ransla*e in*o a ri-h* on *he par* o8 pe*i*ioner *o +eman+ a++i*ional paymen* when, )n+er *he law, pe*i*ioner is clearly e(emp*e+ *here8rom

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and wor#ers who are paid by results as determined by the Secretary of 2abor in appropriate regulations! 7+ield personnel< shall refer to non$agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer and whose actual hours of wor# in the field cannot be determined with reasonable certainty! - In *he case o8 "nion of +ilipro >mployees B"+>D v! Ficar, :C e(plaine+ *ha* *he re=)iremen* o8 Bwhose ac*)al ho)rs o8 work in *he 8iel+ canno* be +e*ermine+ wi*h reasonable cer*ain*yD m)s* be rea+ in con<)nc*ion wi*h %)le IK, #ook IIII o8 *he Implemen*in- %)les - /he cla)se Bwhose *ime an+ per8ormance is )ns)per,ise+ by *he employerD +i+ no* ampli8y b)* merely in*erpre*e+ an+ e(po)n+e+ *he cla)se Bwhose ac*)al ho)rs o8 work in *he 8iel+ canno* be +e*ermine+ wi*h reasonable cer*ain*y D /here is no con*ra+ic*ion@ *he 8ormer cla)se is s*ill wi*hin *he scope an+ p)r,iew o8 Ar* 62 which +e8ines 8iel+ personnel Gence, in +eci+in- whe*her or no* an employeeEs ac*)al workin- ho)rs in *he 8iel+ can be +e*ermine+ wi*h reasonable cer*ain*y, =)ery m)s* be ma+e as *o whe*her or no* s)ch employeeEs *ime an+ per8ormance is cons*an*ly s)per,ise+ by *he employer - D)rin- *he en*ire co)rse o8 *heir 8ishin- ,oya-e, 8ishermen employe+ by pe*i*ioner ha,e no choice b)* *o remain on boar+ i*s ,essel Al*ho)-h *hey per8orm non-a-ric)l*)ral work away 8rom pe*i*ionerEs b)siness o88ices, *he 8ac* remains *ha* *hro)-ho)* *he +)ra*ion o8 *heir work *hey are )n+er *he e88ec*i,e con*rol an+ s)per,ision o8 pe*i*ioner *hro)-h *he ,esselEs pa*ron or mas*er as *he ;L%C correc*ly hel+ Disposition Pe*i*ion DI:"I::$D

MERCIDAR FISHING CORP V NLRC (AGAO $R) 29$ SCRA 440 MENDO,A; O1#8(') 8, 1998
NATURE Pe*i*ion 8or certiorari *o se* asi+e ;L%C +ecision +ismissin"erci+arEs appeal 8rom Labor Arbi*er +ecision FACTS - Fermin A0A3 5r ha+ been employe+ as a Bbo+e-eroD or shipEs =)ar*ermas*er Ge claime+ *o ha,e been cons*r)c*i,ely +ismisse+ by pe*i*ioner when i* re8)se+ him assi-nmen*s aboar+ i*s boa*s Ge *hen 8ile+ a C3"PLAI;/ a-ains* "$%CIDA% 8or ILL$0AL DI:"I::AL, ,iola*ion o8 P D ;o 6H1, an+ nonpaymen* o8 8i,e +ays ser,ice incen*i,e lea,e 8or 1990 - Ge ha+ been sick an+ was allowe+ *o -o on lea,e wi*ho)* pay 8or one mon*h b)* when he repor*e+ *o work wi*h a heal*h clearance, he was *ol+ *o come back ano*her *ime as he co)l+ no* be reins*a*e+ imme+ia*ely For *his reason, he aske+ 8or a cer*i8ica*e o8 employmen* 8rom pe*i*ioner b)* i* re8)se+ *o iss)e *he cer*i8ica*e )nless he s)bmi**e+ his resi-na*ion - "$%CIDA% claime+ *ha* i* was A-ao who ac*)ally aban+one+ his work A-ao was absen* wi*ho)* lea,e 8or *hree mon*hs A-ao sho)l+ also be consi+ere+ 8iel+ personnel beca)se> A-aoEs work is per8orme+ away 8rom "erci+arEs principal place o8 b)siness, *h)s, i* has no way o8 ,eri8yin- his ac*)al ho)rs o8 work on *he ,essel - Labor Arbi*er> or+ere+ "erci+ar *o reins*a*e complainan* wi*h backwa-es, pay his 13*h mon*h pay an+ incen*i,e lea,e pay - ;L%C> a88irme+ +ecision o8 LA ISSUE 13; 8ishin- crew members can be classi8ie+ as 8iel+ personnel )n+er A62 LC HELD ;3 - A#t/ 8</ Co$e#age/ $ /he provisions of this /itle E5or#ing Conditions and 3est PeriodsN shall apply to employees in all establishments and underta#ings whether for profit or not, but not to government employees, field personnel, members of the family of the employer who are dependent on him for support, domestic helpers, persons in the personal service of another,

AUTO BUS TRANSPORT SYSTEMS INC V BAUTISTA 458 SCRA 5$8 C6ICO+NA,ARIO; May 16, 2005
NATURE Pe*i*ion 8or %e,iew on Certiorari FACTS - :ince 2A "ay 199H, respon+en* An*onio #a)*is*a has been employe+ by pe*i*ioner A)*o #)s /ranspor* :ys*ems, Inc !A)*ob)s', as +ri,er-con+)c*or wi*h *ra,el ro)*es "anila/)-)e-arao ,ia #a-)io, #a-)io- /)-)e-arao ,ia "anila an+ "anila-/ab)k ,ia #a-)io %espon+en* was pai+ on commission basis, IP o8 *he *o*al -ross income per *ra,el, on a *wice a mon*h basis - 3n 5an)ary 3, 2000, *he b)s *ha* *he respon+en* was +ri,inacci+en*ally b)mpe+ *he rear por*ion o8 A)*ob)s ;o 12A, as *he la**er ,ehicle s)++enly s*oppe+ a* a sharp c)r,e wi*ho)* -i,inany warnin- %espon+en* a,erre+ *ha* *he acci+en* happene+ beca)se he was compelle+ by *he mana-emen* *o -o back *o %o(as, Isabela, al*ho)-h he ha+ no* slep* 8or almos* 2A ho)rs %espon+en* 8)r*her alle-e+ *ha* he was no* allowe+ *o work )n*il he 8)lly pai+ *he amo)n* o8 PIH,HH1 H0, represen*in- 30P o8 *he cos* o8 repair o8 *he +ama-e+ b)ses an+ *ha* +espi*e respon+en*Es pleas 8or reconsi+era*ion, *he same was i-nore+ by mana-emen* A8*er a mon*h, mana-emen* sen* him a le**er o8 *ermina*ion - %espon+en* ins*i*)*e+ a Complain* 8or Ille-al Dismissal wi*h "oney Claims 8or nonpaymen* o8 13*h mon*h pay an+ ser,ice incen*i,e lea,e pay a-ains* A)*ob)s Pe*i*ioner, on *he o*her han+, main*aine+ *ha* respon+en*Es employmen* was reple*e wi*h o88enses in,ol,in- reckless impr)+ence, -ross ne-li-ence, an+ +ishones*y /o s)ppor* i*s claim, pe*i*ioner presen*e+ copies o8 le**ers, memos, irre-)lari*y repor*s, an+ warran*s o8 arres* per*ainin- *o se,eral inci+en*s wherein respon+en* was in,ol,e+
7

R'le I> H!lida,( 8i ) Pa, :ec*ion 1 Co,era-e - /his r)le shall apply *o all employees e(cep*> !e' Fiel+ personnel an+ o*her employees whose time an+ performance is unsupervised by the employer ((( !I*alics s)pplie+'

Labor Law 1
- F)r*hermore, pe*i*ioner a,ers *ha* in *he e(ercise o8 i*s mana-emen* prero-a*i,e, respon+en*Es employmen* was *ermina*e+ only a8*er *he la**er was pro,i+e+ wi*h an oppor*)ni*y *o e(plain his si+e re-ar+in- *he acci+en* - Labor Arbi*er /abin-an +ismisse+ *he complain* 8or ille-al +ismissal b)* or+ere+ pe*i*ioner *o pay respon+en* his 13*h mon*h pay 8rom *he +a*e o8 his hirin- *o *he +a*e o8 his +ismissal, an+ his ser,ice incen*i,e lea,e pay 8or all *he years he ha+ been in ser,ice wi*h *he respon+en* .pon appeal, *he ;L%C +ele*e+ *he awar+ 8or 13*h mon*h pay an+ main*aine+ *he awar+ 8or ser,ice incen*i,e lea,e /he CA a88irme+ *he +ecision o8 ;L%C ISSUES 13; respon+en* is en*i*le+ *o ser,ice incen*i,e lea,e HELD - A9H LC pro,i+es> A#t/ ;E! %I0G/ /3 :$%KIC$ I;C$;/IK$ L$AK$ !a' $,ery employee who has ren+ere+ a* leas* one year o8 ser,ice shall be en*i*le+ *o a yearly ser,ice incen*i,e lea,e o8 8i,e +ays wi*h pay !ooG III. R')e V SERVICE INCENTIVE LEAVE SECTION 7! Co,era-e T /his r)le shall apply *o all employees e(cep*> C !+' Fiel+ personnel an+ o*her employees whose per8ormance is )ns)per,ise+ by *he employer incl)+in- *hose who are en-a-e+ on *ask or con*rac* basis, p)rely commission basis, or *hose who are pai+ in a 8i(e+ amo)n* 8or per8ormin- work irrespec*i,e o8 *he *ime cons)me+ in *he per8ormance *hereo8@ - /he -ran* o8 ser,ice incen*i,e lea,e has been +elimi*e+ by *he Implemen*in- %)les an+ %e-)la*ions o8 *he Labor Co+e *o apply only *o *hose employees no* e(plici*ly e(cl)+e+ by :ec*ion 1 o8 %)le K Accor+in- *o *he Implemen*in- %)les, :er,ice Incen*i,e Lea,e shall no* apply *o employees classi8ie+ as B8iel+ personnel D /he phrase Bo*her employees whose per8ormance is )ns)per,ise+ by *he employerD m)s* no* be )n+ers*oo+ as a separa*e classi8ica*ion o8 employees *o which ser,ice incen*i,e lea,e shall no* be -ran*e+ %a*her, i* ser,es as an ampli8ica*ion o8 *he in*erpre*a*ion o8 *he +e8ini*ion o8 8iel+ personnel )n+er *he Labor Co+e as *hose Bwhose ac*)al ho)rs o8 work in *he 8iel+ canno* be +e*ermine+ wi*h reasonable cer*ain*y D - /he same is *r)e wi*h respec* *o *he phrase Bthose who are engaged on tas# or contract basis, purely commission basis < :ai+ phrase sho)l+ be rela*e+ wi*h B8iel+ personnel,D applyin*he r)le on ejusdem generis *ha* -eneral an+ )nlimi*e+ *erms are res*raine+ an+ limi*e+ by *he par*ic)lar *erms *ha* *hey 8ollow Gence, employees en-a-e+ on *ask or con*rac* basis or pai+ on p)rely commission basis are no* a)*oma*ically e(emp*e+ 8rom *he -ran* o8 ser,ice incen*i,e lea,e, )nless, *hey 8all )n+er *he classi8ica*ion o8 8iel+ personnel - /here8ore, pe*i*ionerEs con*en*ion *ha* respon+en* is no* en*i*le+ *o *he -ran* o8 ser,ice incen*i,e lea,e <)s* beca)se he was pai+ on p)rely commission basis is misplace+ 1ha* m)s* be ascer*aine+ in or+er *o resol,e *he iss)e o8 proprie*y o8 *he -ran* o8 ser,ice incen*i,e lea,e *o respon+en* is whe*her or no* he is a 8iel+ personnel - Accor+in- *o A62 LC, 7field personnel< shall refer to non$ agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer and whose actual hours of wor# in the field cannot be determined with reasonable certainty /his +e8ini*ion is 8)r*her elabora*e+ in *he =ureau of 5or#ing Conditions B=5CD, 8dvisory 9pinion to Philippine /echnical$Clerical Commercial >mployees 8ssociationM10N which s*a*es *ha*> 8s a general rule, field personnel are those whose performance of their job%service is not supervised by the employer or his representative, the wor#place being away from the principal office and whose hours and days of wor# cannot be determined with reasonable certainty; hence, they are paid specific amount for rendering specific service or performing specific wor#! 'f required to be at specific places

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at specific times, employees including drivers cannot be said to be field personnel despite the fact that they are performing wor# away from the principal office of the employee! - *he +e8ini*ion o8 a B8iel+ personnelD is no* merely concerne+ wi*h *he loca*ion where *he employee re-)larly per8orms his +)*ies b)* also wi*h *he 8ac* *ha* *he employeeEs per8ormance is )ns)per,ise+ by *he employer As +isc)sse+ abo,e, 8iel+ personnel are *hose who re-)larly per8orm *heir +)*ies away 8rom *he principal place o8 b)siness o8 *he employer and whose actual hours of wor# in the field cannot be determined with reasonable certainty /h)s, in or+er *o concl)+e whe*her an employee is a 8iel+ employee, i* is also necessary *o ascer*ain i8 ac*)al ho)rs o8 work in *he 8iel+ can be +e*ermine+ wi*h reasonable cer*ain*y by *he employer In so +oin-, an in=)iry m)s* be ma+e as *o whe*her or no* *he employeeEs *ime an+ per8ormance are cons*an*ly s)per,ise+ by *he employer - I* is o8 <)+icial no*ice *ha* alon- *he ro)*es *ha* are plie+ by *hese b)s companies, *here are i*s inspec*ors assi-ne+ a* s*ra*e-ic places who boar+ *he b)s an+ inspec* *he passen-ers, *he p)nche+ *icke*s, an+ *he con+)c*orEs repor*s /here is also *he man+a*ory once-a-week car barn or shop +ay, where *he b)s is re-)larly checke+ as *o i*s mechanical, elec*rical, an+ hy+ra)lic aspec*s, whe*her or no* *here are problems *hereon as repor*e+ by *he +ri,er an+?or con+)c*or /hey *oo, m)s* be a* speci8ic place an+ speci8ie+ *ime, as *hey -enerally obser,e promp* +epar*)re an+ arri,al 8rom *heir poin* o8 ori-in *o *heir poin* o8 +es*ina*ion In each an+ e,ery +epo*, *here is always *he Dispa*cher whose 8)nc*ion is precisely *o see *o i* *ha* *he b)s an+ i*s crew lea,e *he premises a* speci8ic *imes an+ arri,e a* *he es*ima*e+ proper *ime /hese, are presen* in *he case a* bar /he +ri,er, *he complainan* herein, was *here8ore )n+er cons*an* s)per,ision while in *he per8ormance o8 *his work Ge canno* be consi+ere+ a 8iel+ personnel - %espon+en* is no* a 8iel+ personnel b)* a re-)lar employee who per8orms *asks )s)ally necessary an+ +esirable *o *he )s)al *ra+e o8 pe*i*ionerEs b)siness Accor+in-ly, respon+en* is en*i*le+ *o *he -ran* o8 ser,ice incen*i,e lea,e

RATIONALE = E5EMPTION
RED V COCONUT PRODUCTS LTD V CIR (TANGLAW NG PAGGAWA LABOR UNION) 1$ SCRA 550 BENG,ON; 5 7' 00, 1966
NATURE Pe*i*ion 8or re,iew o8 CI% +ecision an+ "F% FACTS - %e+ K Cocon)* Pro+)c*s, L*+ has a +esicca*e+ cocon)* 8ac*ory wherein 600 o8 i*s workers were members o8 members o8 /an-law n- Pa--awa labor )nion /he workers were classi8ie+ in*o 2 -ro)ps> *he 3-shi8* -ro)p an+ *he 2-shi8* -ro)p - In 19H6 an+ 1971, *he company an+ labor )nion en*ere+ in*o a C#A wherein *hey a-ree+ on paymen* 8or +i88eren*ials *o ni-h* shi8* workers, as 8ollows> 3Hc 8or 2n+ shi8*, HHc 8or 3r+ shi8* 2#! '" 3shi8* -ro) p 2shi8* -ro) p H#( 8!#= 1s* !6hrs' 2n+ !6hrs' 3r+ !6hrs' 1s* !12hrs' 2n+ !12hrs' !f shi8* shi8* shi8* shi8* shi8* diffe#e% ial( Aam12nn 12nn6pm 6pmAam AamApm ApmAam Pa,+ e% ;one 3Hc HHc

;one HHc

Labor Law 1
- In 1972, /an-law n- Pa--awa an+ member-workers who belon- *o *he 2-shi8* -ro)p 8ile+ a pe*i*ion wi*h CI% ar-)in- *ha* *hey sho)l+ recei,e wha* *he 2n+ an+ 3r+ shi8*s o8 *he 3-shi8 -ro)p, combine+, recei,e as +i88eren*ial pay !90c X HHc ] 3Hc' since *heir ni-h*work is e=)i,alen* *o *he ni-h*work o8 *he 2 n+ an+ 3r+ shi8* o8 3-shi8* -ro)p combine+ /hey were *here8ore askin- 8or an a++i*ional 3Hc 8or work +one by *hem 8rom Apm *o Aam 3n *he o*her han+, %e+ K claims *ha* CI% has no <)ris+ic*ion o,er *he case since *he claim asser*e+ by /an-law is a (i+"le +!%e, &lai+ an+ *ha* a% i% e#"#e a i!% !f a &!% #a& BC/AD i( i%$!l$ed !sho)l+ ha,e -one *o CFI' - CI%> ha+ <)ris+ic*ion since i* in,ol,e+ )npai+ o,er*ime pay o8 laborers s*ill employe+ by *he company - /an-law 8ile+ ano*her pe*i*ion alle-in- '%fai# la0!# "#a& i&e 8or re8)sin- *o -ran* 1H +ays lea,e wi*h pay *o members o8 *he )nion in ,iola*ion o8 C#A - CI%> workers were en-a-e+ in pakiao !piece-work basis' an+ sho)l+ no* be en*i*le+ *o o,er*ime pay )n+er *he $i-h*-Go)r labor law !:ec 2, CAAAA'@ *ha* *heir pe*i*ion f!# %i:) ()if diffe#e% ial( 0a(ed !% C/A i( +e#i !#i!'( beca)se *he company ha,in- pai+ ni-h* +i88eren*ials in+iscrimina*ely *o *he ni-h* shi8* workers o8 3-shi8* -ro)p an+ 2-shi8* -ro)p alike, *he paymen*s sho)l+ be )ni8orm an+ e=)al 8or *he ni-h* shi8*s o8 bo*h -ro)ps!90c' Tpay +e8iciency *o workers o8 2-shi8* -ro)p ISSUES 1 13; *he CI% has <)ris+ic*ion o,er *he case 2 13; *he $i-h*-Go)r Labor Law re-ar+in- paymen* o8 o,er*ime compensa*ion *o piece-workers is applicable in *he case HELD 1 &$: Ratio /o +e*ermine *he iss)e o8 *he <)ris+ic*ion, resor* is *o be ma+e *o *he alle-a*ions in *he pe*i*ion or complain* Reasoning - %e+ K claims *ha* *he case in,ol,es mere money claim /he pe*i*ion +i+ no* e(pressly men*ion *he $i-h*-Go)r Labor Law :*ill, !1' respon+en*s are workin- 8or *he company an+ !2' *hese workers work in 2 shi8*s, appro(ima*ely 12 ho)rs each shi8* /here8ore, *he pe*i*ion is one f!# !$e# i+e "a, 0, 8!#=e#( ( ill e+"l!,ed 0, )e &!+"a%, which 8alls wi*hin *he <)ris+ic*ion o8 *he CI% O,ite# - pe*i*ioner presen*e+ e,i+ence which +oes no* appear 8rom *he pe*i*ion or complain* 8ile+ wi*h CI% !pro,in- *ha* workers were en-a-e+ on a piece-work basis' so i* canno* a88ec* CI%Es <)ris+ic*ion o,er *he case which was alrea+y ac=)ire+ 5)ris+ic*ion, once ac=)ire+, con*in)es )n*il 8inal a+<)+ica*ion o8 *he li*i-a*ion 2 &$: Ratio Al*ho)-h *he $i-h*-Go)r Labor Law pro,i+es *ha* i* +oes no* co,er *hose workers who pre8er *o be pai+ on piece-work basis !:ec 2, CA AAA', no*hin- in sai+ law precl)+es an a-reemen* 8or *he paymen* o8 o,er*ime precl)+es an a-reemen* 8or *he paymen* o8 o,er*ime compensa*ion *o pieceworkers An+ in a-reein- *o *he pro,ision 8or paymen* o8 shi8* +i88eren*ial *o *he pe*i*ioners-workers a8oremen*ione+, in *he bar-ainin- a-reemen*, as well as in ac*)ally payin- *o *hem sai+ +i88eren*ials, *ho)-h no* in 8)ll, *he company in e88ec* 8reely a+here+ *o an applica*ion an+ implemen*a*ion o8 *he $i-h*-Go)r Labor Law, or i*s ob<ec*i,es, *o sai+ workers Reasoning - I* sho)l+ be obser,e+ *ha* while *he pro,ision in *he bar-ainin- a-reemen*s speaks o8 shi8* +i88eren*ials 8or *he 9secon+ shi8*9 an+ *he 9*hir+ shi8*9 an+ 2-shi8* -ro)p has no *hir+ shi8*, sai+ 2-shi8* -ro)p has a secon+ shi8*, which per8orms work e=)i,alen* *o *ha* o8 *he correspon+in- shi8*s o8 3-shi8*

A2010

- 133 -

Disini

-ro)p I* 8ollows *ha* respon+en* co)r* +i+ no* err in or+erin*he company *o pay *he 8)ll an+ e=)i,alen* amo)n* o8 sai+ +i88eren*ials !P 90' correspon+in-, )n+er *he bar-ainina-reemen*s, *o *he workers who per8orme+ 12 ho)rs o8 work, 8rom A P " *o A A " - /he laborers are no* s*ric*ly )n+er *he 8)ll concep* o8 pieceworkers beca)se )ei# )!'#( !f 8!#= a#e fiHed 0, )e e+"l!,e# Piece workers were e(cl)+e+ 8rom *he $i-h*-Go)r Labor Law beca)se (aid 8!#=e#( a#e "aid de"e%di%: '"!% )e 8!#= )e, d! Ei##e("e& i$e !f )e a+!'% !f i+e e+"l!,edE i% d!i%: (aid 8!#=. :)ch 8ree+om as *o ho)rs o8 work +oes no* apply *o *he respon+en* workers since *hey are assi-ne+ by *he employer *o work in *wo shi8*s 8or 12 ho)rs each shi8* /h)s i* canno* be sai+ *ha* 8or all p)rposes *hese workers 8all o)*si+e *he law re=)irin- paymen* o8 compensa*ion 8or work +one in e(cess o8 ei-h* ho)rs At )east ?o# t"e p'#pose o? #e+o$e#ing t"e ?')) %i??e#entia) pa* stip')ate% in t"e ,a#gaining ag#ee(ent as %'e to )a,o#e#s -"o pe#?o#( 7< "o'#s o? -o#G 'n%e# t"e nig"t s"i?t. sai% )a,o#e#s s"o')% ,e %ee(e% p#o tanto o# to t"at eHtent -it"in t"e s+ope o? t"e a?o#e-state% )a-/ Disposition +ecision an+ resol)*ion o8 *he Co)r* o8 In+)s*rial %ela*ions )n+er re,iew are a88irme+

5.05 NORMAL HOURS OF 3OR7 5.04 HOURS 3OR7ED

IDLE TIME
NATIONAL DEVELOPMENT CO V CIR 6 SCRA $60 REGALA; N89'3(') 00, 1962
FACTS - A* *he ;a*ional De,elopmen* Co !;DC', *here were 8o)r $i-h*ho)r shi8*s o8 work, each one ha,in- a 1-ho)r meal*ime perio+ Pe*i*ioner ne,er*heless cre+i*e+ *he workers wi*h an+ pai+ *hem 8or *he 8)ll 6-ho)r shi8* Gowe,er, since 19H3, whene,er workers con*in)e+ workin- *hro)-h *he ne(* shi8*, pe*i*ioner only pai+ *hem 8or 7 ho)rs, claimin- *he 2 ho)rs 8or meals sho)l+ no* be compensa*e+ /he ;a*ional /e(*ile 1orkers .nion !;/1.' +isa-ree+ an+ aske+ 8or an or+er 8or o,er*ime pay wi*h *he CI% which was -ran*e+ - Pe*i*ioner appeale+, con*en+in- *ha* !1' *he CI% ha+ no <)ris+ic*ion o,er claims o8 o,er*ime compensa*ion an+ *ha* !2' *he CI% +i+ no* make a correc* appraisal o8 *he 8ac*s in hol+in*ha* meal*ime perio+s sho)l+ be incl)+e+ in o,er*ime work ISSUES 1 13; *he CI% ha+ <)ris+ic*ion o,er claim o8 o,er*ime compensa*ion 2 13; *he meal*ime perio+s sho)l+ be consi+ere+ workin*ime HELD 1 &$: - I* was recen*ly hel+ in Campos , "anila %ailroa+ Co *ha* *he 88 are *he re=)isi*es 8or <)ris+ic*ion> !1' *here m)s* e(is* an employer-employee rela*ionship be*ween *he par*ies or *he claiman* m)s* seek reins*a*emen*@ !2' *he con*ro,ersy m)s* rela*e *o a case cer*i8ie+ by *he Presi+en* *o *he CI% as one in,ol,in- na*ional in*eres*, or m)s* ha,e a bearin- on an )n8air labor prac*ice char-e, or m)s* arise ei*her )n+er *he $i-h*-Go)r Labor Law, or )n+er *he "inim)m 1a-e Law Absen* ei*her re=)isi*e ren+ers *he claim a mere money claim comin- )n+er *he <)ris+ic*ion o8 re-)lar co)r*s #eca)se *here was clearly an employer-employee rela*ionship e(is*in- be*ween *he ;DC an+

Labor Law 1
*he )nion members an+ *he claim was base+ on *he $i-h*-Go)r Labor Law, CI% ha+ <)ris+ic*ion o8 o,er *he case 2 &$: - As s*a*e+ in :ec 1 o8 Com Ac* ;o AAA, B/he le-al workin- +ay 8or any person employe+ by ano*her shall be o8 no* more *han 6 ho)rs +aily 1hen *he work is no* con*in)o)s, *he *ime +)rinwhich *he laborer is no* workin- an+ can lea,e his workinplace an+ can res* comple*ely shall no* be co)n*e+ D I* is clear 8rom *he pro,ision *ha* i+le *ime spen* res*in- an+ +)rin- which an employee may lea,e *he workplace is no* co)n*e+ as workin- *ime only where *he work is broken or no* con*in)o)s In *his case, *he CI%2s 8in+in- *ha* work in *he ;DC was con*in)o)s an+ +i+ no* permi* employees an+ laborers *o res* comple*ely is no* wi*ho)* basis in e,i+ence an+ 8ollowin- *he Co)r*Es earlier r)lin-s, *hese 8in+in-s are no* *o be +is*)rbe+ - In a++i*ion, beca)se pe*i*ioner 8aile+ *o ser,e a copy o8 i*s mo*ion 8or reconsi+era*ion *o ;/1. as re=)ire+ by :ec 1H o8 *he r)les o8 *he CI%, *here is no +ecision o8 *he CI% en banc *ha* pe*i*ioner can brin- *o *he Co)r* 8or re,iew Disposition CI% or+er an+ resol)*ion are AFFI%"$D an+ *he appeal DI:"I::$D

A2010

- 13A -

Disini

LUZON STEVEDORING CO V LUZON MARINE DEPARTMENT UNION 101 P2./ 25$ &ELI;; A-)./ 29 195$
NATURE Pe*i*ion 8or cer*iorari 8ile+ by L)4on :*e,e+orin- Co !L:C' *o re,iew a resol)*ion by CI% FACTS - L)4on "arine De,elopmen* .nion !L"D.' 8ile+ a pe*i*ion wi*h *he CI% con*ainin- se,eral +eman+s a-ains* L:C, amon- which were *he pe*i*ion 8or 8)ll reco-ni*ion o8 *he ri-h* o8 collec*i,e bar-ainin-, close shop an+ check o88 -1hile *he case was s*ill pen+in-, *he )nion con+)c*e+ a s*rike which was r)le+ +own as ille-al D)e *o *he r)lin-, *he )nion 8ile+ a Bcons*anciaD wi*h *he CI% prayin- *ha* *he remainin)nresol,e+ +eman+s o8 *he )nion be presen*e+ in *heir ori-inal pe*i*ion, be -ran*e+ 3*her +eman+s incl)+e+ *he 3/ pay, paymen* o8 *he employees who ha,e no* recei,e+ *heir pay correspon+in- *o *he secon+ hal8 o8 Dec 9A1, reins*a*emen* o8 cer*ain in+i,i+)als s)spen+e+ wi*ho)* <)s*i8iable ca)se -/he )nresol,e+ +eman+s are *he 88> per8orme+ work in e(cess o8 6 hrs be pai+ an 3/ pay o8 H0P o8 *he re-)lar ra*e an+ *ha* work per8orme+ on :)n+ays an+ holi+ays be pai+ 2( *he re-)lar ra*e !poin* no 2'@ *ha* all *he o88icers, e*c who ha,enE* recei,e+ *heir pay correspon+in- *o *he 2n+ hal8 o8 Dec be pai+ accor+in-ly !poin* no I'@ *ha* Ciriaco, e*c who ha,e been s)spen+e+ wi*ho)* <)s*i8iable ca)se 8or )nion ac*i,i*ies be reins*a*e+ !poin* no 11'@ *ha* all o88icers, e*c who ha,e been +ischar-e+ beca)se o8 )nion ac*i,i*ies be reins*a*e+ !poin* no 12' - D)e *o *hese +eman+s *he case was se* 8or hearin- /he ori-inal in*er,enor, mo,e+ 8or *he wi*h+rawal o8 sai+ .nion 8rom *he case, which mo*ion was -ran*e+ by *he Co)r* - TC 8o)n+ *ha* *he company -a,e employees 3 8ree meals e,ery +ay an+ abo)* 20 min)*es res* a8*er each meal*ime@ *ha* *hey worke+ 8rom 7am-7pm e,ery +ay incl)+in- :)n+ays an+ holi+ays, an+ 8or work per8orme+ in e(cess o8 6 ho)rs, *he o88icers, pa*rons an+ ra+io opera*ors were -i,en o,er*ime pay in *he amo)n* o8 PA each an+ P2 each 8or *he res* o8 *he crew )p *o "arch, 19AI, an+ a8*er sai+ +a*e, *hese paymen*s were

increase+ *o PH an+ P2 H0, respec*i,ely, )n*il *he *ime o8 *heir separa*ion or *he s*rike@ *ha* when *he *)-boa*s )n+erwen* repairs, *heir personnel worke+ only 6 ho)rs a +ay e(cl)+in:)n+ays an+ holi+ays@ *ha* al*ho)-h *here was an e88or* on *he par* o8 claiman*s *o show *ha* some ha+ worke+ beyon+ 7pm, *he e,i+ence was )ncer*ain an+ in+e8ini*e an+ *ha* +eman+ was +enie+@ *ha* Company, by *he na*)re o8 i*s b)siness an+ as +e8ine+ by law is consi+ere+ a p)blic ser,ice opera*or by *he P)blic :er,ice Commission an+, *here8ore, e(emp* 8rom payina++i*ional rem)nera*ion or compensa*ion 8or work per8orme+ on :)n+ays an+ le-al holi+ays !:ecA CA ;o AAA' - For *he reasons abo,e, employees are only en*i*le+ *o recei,e o,er*ime pay 8or work ren+ere+ in e(cess o8 6hrs on or+inary +ays incl)+in- :)n+ays an+ le-al holi+ays /he company was able *o pro,e *ha* i* has pai+ i*s employees 8or s)ch o,er*ime wok as shown abo,e I* was only a ma**er o8 comp)*a*ion whe*her *he 3/ ser,ices pai+ co,er ac*)al 3/ work per8orme+ e=)i,alen* *o 2HP !min ra*e 8i(e+ by law in *he absence o8 o*her proo8 *o <)s*i8y *he -ran*in- o8 more beyon+ sai+ min ra*e - Deman+s nos 11 U 12 were +enie+ an+ L:C was only or+ere+ *o pay separa*ion pay an+ 3/ a8*er 8in+in- *ha* *he s)spensions an+ +ismissals were 8or ,ali+ le-al -ro)n+s - L"D. 8ile+ "F% *o +eclare *ha* *hose who work 8rom 7am-7pm were en*i*le+ *o Ahrs 3/ pay, *ha* *he *ime allo**e+ 8or *heir meals sho)l+ no* be +e+)c*e+ 8rom *he sai+ Ahrs, *ha* *he amo)n*s se* asi+e 8or *he meals o8 sho)l+ be consi+ere+ as par* o8 *heir ac*)al compensa*ion, *ha* *he employees separa*e+ wi*ho)* <)s* ca)se be pai+ *heir )nearne+ wa-es 8rom *he *ime o8 +ecision became 8inal, an+ 8or o*her relie8 - L:C 8ile+ "F% in so 8ar as i* in*erpre*e+ *ha* *he perio+ +)rinwhich a seaman aboar+ a *)-boa* sho)l+ be consi+ere+ as Bworkin- *imeD 8or *he p)rposes o8 *he $i-h*-Go)r-Labor Law - /he Co)r* ma+e a resol)*ion, in p)rs)ance o8 CA 103 as amen+e+, mo+i8yin- *he pre,io)s <)+-men* sayin- *ha* *he Ahrs o8 3/ work incl)+e+ in *he re-)lar +aily ske+ o8 ^am-7pm sho)l+ be pai+ in+epen+en*ly o8 *he so-calle+ Bco88ee-moneyD a8*er 8in+in- *ha* sai+ e(*ra amo)n* were -i,en *o some *)-boa* crew members 8or work per8orme+ beyon+ 7pm L:CEs "F% was +enie+ - L:C 8ile+ *he presen* pe*i*ion o8 cer*iorari when CI% r)le+ *ha* *he 20mins res* -i,en *he claiman*s a8*er meal*ime sho)l+ no* be +e+)c*e+ 8rom *he Ahrs o8 3/ work per8orme+ - L"L. 8ile+ a "/D which :C consi+ere+ as an answer, alle-in*ha* *he CI% +ecision !)n+er consi+era*ion in *he case' +oes no* presen* any =)es*ion o8 law, *he iss)es bein- p)rely 8ac*)al CI% <)+-es also asser*e+ *ha* *here is no =)es*ion o8 law ISSUES 1 13; Bho)rs o8 workD as applie+ *o +rylan+ laborers are e=)ally applicable *o seamen 2 13; a person sho)l+ be penali4e+ 8or 8ollowin- an opinion o8 *he :ec o8 5)s*ice absen* any prono)ncemen* 3 13; compensa*ion 8or 2 years a-ree+ )pon le-ally an+ +eeme+ re*roac*i,ely is pres)me+ *o cons*i*)*e 8)ll paymen* o8 all ser,ices ren+ere+ !incl)+in- 3/ pay' pro,i+e+ employees wi*h 8)ll knowle+-e o8 *he law, ,ol)n*arily a-ree+ *o work in consi+era*ion o8 s)ch wa-e an+ con*in)e+ workin- wi*ho)* pro*es* A 13; members o8 .nion ha,in- e(pressly mani8es*e+ ac=)iescence o,er a perio+ o8 almos* *wo years wi*h re8erence *o *he s)88iciency o8 *heir wa-es an+ ha,in- ma+e no pro*es* wha*soe,er wi*h re8erence *o sai+ compensa*ion are es*oppe+ 8rom claimin- 3/ compensa*ion H 0ran*in-, wi*ho)* conce+in-, *ha* any 3/ is +)e, wha* is *he e(*en* an+ r)le o8 re*roac*i,i*y as se* 8or*h an+ es*ablishe+ by *he prece+en*s an+ policies o8 *he CI% as a88irme+ by *he :CJ 7 13; *he -ran* o8 si4eable amo)n* o8 back 3/ wa-es by *he CI% is in consonance wi*h *he +ic*a*es o8 p)blic policy on reco,ery an+ 8inancial s*abili*y I 13; a CI% resol)*ion, )ns)ppor*e+ in 8ac* an+ in law, can be +eclare+ ille-al HELD 1 &$:

Labor Law 1
Ratio /here is no nee+ *o se* a +i88eren* cri*erion *o be applie+ *o *he seamen A laborer +oesnE* nee+ *o lea,e *he premises in or+er *ha* his perio+ o8 res* shall no* be co)n*e+, s)ch *ha* i* is eno)-h *ha* he Bceases *o workD, may res* comple*ely an+ lea,e his spo* where he ac*)ally has s*ays while workin- 6 Reasoning - L:C claims *ha* *he 12hr work is no* con*in)o)s b)* in*err)p*e+ or broken I* was 8o)n+ *r)e howe,er *hey co)l+ no* <)s* lea,e +)e *o *he na*)re o8 *heir +)*y pre,en*in- *hem *o lea,e *he *)-boa*s 2 /he co)r* canno* pass )pon *he iss)e beca)se *here was no*hin- on *he recor+ sayin- *ha* wo)l+ s)ppor* *he pe*i*ionerEs asser*ion *ha* in +ealin- wi*h i*s employees, i* was -)i+e+ by s)ch opinion 3 U A Ratio ;3 /he ri-h* o8 *he laborers *o 3/ canno* be wai,e+ CAAAA, :ec 79 applies Reasoning - $s*oppel an+ laches canno* be in,oke+ a-ains* employees or laborers in an ac*ion 8or *he reco,ery o8 compensa*ion 8or pas* 3/ work I* wo)l+ be con*rary *o *he spiri* o8 *he $i-h*-Go)r Labor Law s)ch *ha* *he laborers canno* wai,e *heir ri-h* *o e(*ra compensa*ion :econ+ly, *he law principally obli-a*es *he employer *o obser,e i* *ha* i* p)nishes *he employer 8or i*s ,iola*ion an+ lea,es *he employee 8ree an+ blameless /hir+ly, *he employee or laborer is in s)ch a +isa+,an*a-eo)s posi*ion as *o be na*)rally rel)c*an* or e,en apprehensi,e in asser*in- a claim which may ca)se *he employer *o +e,ise a way 8or e(ercisin- his ri-h* *o *ermina*e *he employmen* - "oreo,er, i8 *he principle o8 es*oppel an+ laches is *o be applie+, i* wo)l+ brin- abo)* a si*)a*ion whereby *he employee or laborer who can no* e(pressly reno)nce *he ri-h* *o e(*ra compensa*ion, may be compelle+ *o accomplish *he same *hin- by mere silence or lapse o8 *ime, 8r)s*ra*in- *he p)rpose o8 *he law by in+irec*ion !"anila /erminal Co , CI%' - In *he case a* han+, *he complainin- laborers ha,e e,en +eclare+ be8ore *he 8ilin- o8 *he case *ha* *hey in8orme+ *he o,erseer o8 *he L:C *ha* *hey ha,e been workin- 3/ claimin8or *heir compensa*ion /he recor+s +o no* show *ha* some members o8 L"L. ha+ recei,e+ salaries les *han *he min wa-e H Ratio /he employee in ren+erin- e(*ra ser,ices a* *he re=)es* o8 his employer has *he ri-h* *o ass)me *ha* *he la**er has complie+ wi*h *he re=)iremen*s o8 *he law Reasoning - Fear o8 possible )nemploymen* inhibi*s *he employee 8rom asser*in- his ri-h* )n+er *he law /o allow *he workin-man *o be compensa*e+ only 8rom *he +a*e o8 8ilin- wo)l+ be *o penali4e him 8or his silence Al*ho)-h L:C claims *ha* *he comp)*a*ion o8 *he 3/ in arrears sho)l+ be base+ 8rom *he 8ilino8 *he pe*i*ion *his case is no* in poin* 7 Ratio :epara*ion o8 powers Reasoning - /he co)r*s canno* -o o)*si+e *he 8iel+ o8 in*erpre*a*ion so as *o in=)ire in*o *he mo*i,es o8 Con-ress in enac*in- a piece o8 le-isla*ion I &$: - Gowe,er, *he iss)e )n+er consi+era*ion is pre+ica*e+ on a si*)a*ion no* ob*ainin- in *he case a* bar I* s)pposes *ha* *he CI% resol)*ion is )ns)ppor*e+, which +oes no* seem *o be *he case - /he CI% is a co)r* wi*h well-+e8ine+ powers ,es*e+ by *he law crea*in- i* an+ wi*h s)ch o*her powers *ha* per*ain *o a co)r* o8 <)s*ice /he -eneral r)le *ha* be8ore <)+-men* becomes 8inal, *he Co)r* *ha* ren+ere+ *he same may al*er or mo+i8y i* so as *o con8orm wi*h *he law an+ *he e,i+ence, is applicable *o *he CI%
8
CA AAA !$i-h*-Go)r-Labor Law' :ec 1 is applie+ *o con*emporary re-)la*ions iss)e+ by a+minis*ra*i,e a)*hori*ies :$C 1 /he le-al workin- +ay 8or any person employe+ by ano*her shall be o8 no* more *han ei-h* ho)rs +aily 1hen *he work is no* con*in)o)s, *he *ime +)rin- which *he laborer is no* workin- A;D CA; L$AK$ GI: 13%KI;0 PLAC$ an+ can res* comple*ely, shall no* be co)n*e+

A2010

- 13H -

Disini

/he law also pro,i+es *ha* a8*er a <)+-e o8 *he CI%, +)ly +esi-na*e+ by *he Presi+in- 5)+-e *herein *o hear a par*ic)lar case, ha+ ren+ere+ a +ecision, any a--rie,e+ par*y may re=)es* 8or reconsi+era*ion *hereo8 an+ *he <)+-es o8 sai+ Co)r* shall si* *o-e*her, *he conc)rrence o8 *he 3 o8 *hem beinnecessary 8or *he prono)ncemen* o8 a +ecision, or+er or awar+ In ,ir*)e o8 *hese r)les an+ )pon "F% presen*e+ by bo*h par*ies, *he resol)*ion s)b<ec* o8 *he presen* pe*i*ion was iss)e+, *he Co)r* en banc 8in+in- i* necessary *o mo+i8y a par* o8 *he +ecision, which is clearly wi*hin i*s power *o +o Disposition on *he s*ren-*h o8 *he 8ore-oin- consi+era*ion, *he resol)*ions o8 CI% appeale+ 8rom are hereby a88irme+

CONTINUOUS WORK
STATES MARINE CORP V CEBU SEAMEN S ASSOC $ SCRA 294 PAREDES; &'() a)y 28, 1960
NATURE 1ri* 8or cer*iorari FACTS - :*a*es "arine Corpora*ion an+ %oyal Line, Inc !:"C' were en-a-e+ in *he b)siness o8 marine coas*wise *ranspor*a*ion, employin- s*eamships o8 Philippine re-is*ry /hey ha+ a collec*i,e bar-ainin- con*rac* wi*h Ceb) :eamen2s Associa*ion, Inc !C:A' - 3n :ep*ember 12, 19H2, *he :"C 8ile+ wi*h *he CI%, a pe*i*ion a-ains* :"C /he .nion alle-e+ *ha* *he o88icers an+ men workin- on boar+ *he pe*i*ioners2 ,essels ha,e no* been pai+ *heir sick lea,e, ,aca*ion lea,e an+ o,er*ime pay@ *ha* C:A *hrea*ene+ or coerce+ *hem *o accep* a re+)c*ion o8 salaries, obser,e+ by o*her shipowners@ *ha* a8*er *he "inim)m 1a-e Law ha+ *aken e88ec*, *he pe*i*ioners re=)ire+ *heir employees on boar+ *heir ,essels, *o pay *he s)m o8 P A0 8or e,ery meal, while *he mas*ers an+ o88icers were no* re=)ire+ *o pay *heir meals - C:A answere+ by sayin- *ha* *hey ha,e s)88ere+ 8inancial losses in *he opera*ion o8 *heir ,essels an+ *ha* *here is no law which pro,i+es 8or *he paymen* o8 sick lea,e or ,aca*ion lea,e *o employees or workers o8 pri,a*e 8irms@ *ha* as re-ar+s *he claim 8or o,er*ime pay, *he pe*i*ioners ha,e always obser,e+ *he pro,isions o8 Comm Ac* ;o AAA, !$i-h*-Go)r Labor Law', no*wi*hs*an+in- *he 8ac* *ha* i* +oes no* apply *o *hose who pro,i+e means o8 *ranspor*a*ion - A +ecision was ren+ere+ in 8a,or o8 *he )nion In i*s +ecision, i* also hel+ *ha* Pepi*o :e,erino, one o8 i*s boa*smen, ren+ere+ o,er*ime work an+ was no* pai+ /he mo*ion 8or reconsi+era*ion, ha,in- been +enie+, *he companies 8ile+ *he presen* wri* o8 cer*iorari, *o resol,e le-al =)es*ion in,ol,e+ ISSUES 13; *he CI% erre+ in hol+in- *ha* :e,erino Pepi*o, a boa*sman, ha+ ren+ere+ o,er*ime work no*wi*hs*an+in- *he pro,isions o8 sec*ion 1, o8 C A ;o AAA HELD ;3 - /he pro,isions o8 sec 1, o8 Comm Ac* ;o AAA, s*a*es *ha* 91hen *he work is no* con*in)o)s, *he *ime +)rin- which *he laborer is no* workin- an+ can lea,e his workin- place an+ can res* comple*ely shall no* be co)n*e+ 9 :e,erino Pepi*o ca*e-orically s*a*e+ *ha* he worke+ +)rin- *he la*e ho)rs o8 *he e,enin- an+ +)rin- *he early ho)rs o8 *he +ay when *he boa* +ocks an+ )nloa+s Asi+e 8rom *he abo,e, he +i+ o*her <obs s)ch as remo,in- r)s*s an+ cleanin- *he ,essel, which o,er*ime work *o*alle+ *o 7 ho)rs a +ay, an+ o8 which he has no* been pai+ as ye* :ec 1, o8 Comm Ac* ;o AAA 8in+ no applica*ion in his case

:$C 7 Any a-reemen* or con*rac* be*ween *he employer an+ *he laborer or employee con*rary *o *he pro,isions o8 *his Ac* shall be n)ll an+ ,oi+ ab ini*io

Labor Law 1
Disposition pe*i*ioners pe*i*ion is +ismisse+, wi*h cos*s a-ains* *he

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WAITIN1 TIME
ARICA V NLRC 1$0 SCRA $$6 PARAS; &'() a)y 28, 1989
FACTS - /his case s*emme+ 8rom a complain* 8ile+ on April 9, 196A a-ains* pri,a*e respon+en* :*an8ilco 8or assembly *ime, moral +ama-es an+ a**orney2s 8ees - A8*er *he s)bmission by *he par*ies o8 *heir respec*i,e posi*ion papers, Labor Arbi*er Pe+ro C %amos ren+ere+ a +ecision +a*e+ 3c*ober 9, 196H in 8a,or o8 pri,a*e respon+en* :/A;FILC3, hol+in- *ha*> *he *hir*y-min)*e assembly *ime lon- prac*ice+ canno* be consi+ere+ wai*in- *ime or work *ime an+, *here8ore, no* compensable, has become *he law o8 *he case which can no lon-er be +is*)rbe+ wi*ho)* +oin- ,iolence *o *he *ime- honore+ principle o8 res$judicata! - ;L%C )phel+ *he Labor Arbi*ers2 +ecision s*a*in- *ha* *he c)s*omary 8)nc*ions re8erre+ *o in *he pro,ision o8 *he a-reemen* incl)+es *he lon--s*an+inprac*ice an+ ins*i*)*ionali4e+ non-compensable assembly *ime /his, in e88ec*, es*oppe+ complainan*s 8rom p)rs)in- *his case - ;L%C +enie+ mo*ion 8or reconsi+era*ion - Gence *his pe*i*ion 8or re,iew on cer*iorari 8ile+ on "ay I, 196I - Pe*i*ioners> *he preliminary ac*i,i*ies as workers o8 respon+en*s :/A;FILC3 in *he assembly area is compensable as workin- *ime !8rom H>30 *o 7>00 o2clock in *he mornin-' since *hese preliminary ac*i,i*ies are necessarily an+ primarily 8or pri,a*e respon+en*2s bene8i*> roll call, -e**in- in+i,i+)al work assi-nmen*s 8rom *he 8oreman@ accomplishin- *he Laborer2s Daily Accomplishmen* %epor*@ -e**in- work ma*erials@ *ra,el *o *he 8iel+ brin-in- wi*h *hem *heir *ools, e=)ipmen* an+ ma*erials - %espon+en*> *he ins*an* complain* is no* new, *he ,ery same claim ha,in- been bro)-h* a-ains* herein respon+en* by *he same -ro)p o8 rank an+ 8ile employees in *he case o8 Associa*e+ Labor .nion an+ :*an+ar+ Fr)i* Corpora*ion when AL. was *he bar-ainin- a-en* o8 respon+en*2s rank an+ 8ile workers ISSUE 13; ;L%C commi**e+ a -ra,e ab)se o8 +iscre*ion in i*s resol)*ion o8 Dec 1I, 1967 HELD - /he +ecision o8 *he "inis*er o8 Labor, on "ay 12, 19I6 in *he a8oreci*e+ case !Associa*e+ Labor .nion ,s :*an+ar+ !Phil ' Fr)i* Corpora*ion ma+e si-ni8ican* 8in+in-s o8 8ac*s an+ concl)sions on *he ma**er /he "inis*er o8 Labor hel+> /he *hir*y !30'-min)*e assembly *ime lon- prac*ice+ an+ ins*i*)*ionali4e+ by m)*)al consen* o8 *he par*ies )n+er Ar*icle IK, :ec*ion 3, o8 *he Collec*i,e #ar-ainin- A-reemen* canno* be consi+ere+ as wai*in- *ime wi*hin *he p)r,iew o8 :ec*ion H, %)le I, #ook III o8 *he %)les an+ %e-)la*ions Implemen*in- *he Labor Co+e - I* is clear *ha* herein pe*i*ioners are merely rei*era*in- *he ,ery same claim which *hey 8ile+ *hro)-h *he AL. an+ which recor+s show ha+ alrea+y lon- been consi+ere+ *ermina*e+ an+ close+ by *his Co)r* in 0 % ;o L-A6H10 /here8ore, *he ;L%C can no* be 8a)l*e+ 8or r)lin- *ha* pe*i*ioners2 claim is alrea+y barre+ by res$judicata! - #e *ha* as i* may, pe*i*ioners2 claim *ha* *here was a chan-e in *he 8ac*)al scenario which are 9s)bs*an*ial chan-es in *he 8ac*s9 makes respon+en* 8irm now liable 8or *he same claim *hey earlier 8ile+ a-ains* respon+en* which was +ismisse+ I* is *h)s a(ioma*ic *ha* *he non-compensabili*y o8 *he claim ha,in- been earlier es*ablishe+, cons*i*)*e *he con*rollin- le-al r)le or

+ecision be*ween *he par*ies an+ remains *o be *he law of the case makin- *his pe*i*ion wi*ho)* meri* - As a r)le, *he 8in+in-s o8 8ac*s o8 =)asi-<)+icial a-encies which ha,e ac=)ire+ e(per*ise beca)se *heir <)ris+ic*ion is con8ine+ *o speci8ic ma**ers are accor+e+ no* only respec* b)* a* *imes e,en 8inali*y i8 s)ch 8in+in-s are s)ppor*e+ by s)bs*an*ial e,i+ence /he recor+s show *ha* *he Labor Arbi*ers2 +ecision +a*e+ 3c*ober 9, 196H poin*e+ o)* in +e*ail *he basis o8 his 8in+in-s an+ concl)sions, an+ no co-en* reason can be 8o)n+ *o +is*)rb *hese 8in+in-s nor o8 *hose o8 *he ;a*ional Labor %ela*ions Commission which a88irme+ *he same

SEPARATE OPINION SARMIENTO &'())*+,- I* is my opinion *ha* res judicata is no* a bar - /he +ecision penne+ by *hen "inis*er #las 3ple in AL. , :/A;FILC3 !;L%C Case ;o 27-L:-LI-I7' relie+ )pon by *he respon+en*s as basis 8or claims o8 res judicata, is no*, *o my min+, a con*rollin- prece+en* In *ha* case, i* was hel+ *ha* *he *hir*y-min)*e 9wai*in- *ime9 complaine+ o8 was a mere 9assembly *ime9 an+ no* a wai*in- *ime as *he *erm is known in law, an+ hence, a compensable ho)r o8 work - Precisely, i* is *he pe*i*ioners2 con*en*ion *ha* *he assembly *ime in =)es*ion ha+ since )n+er-one +rama*ic chan-es - /he pe*i*ioners ha,e ,ehemen*ly main*aine+ *ha* in ,iew *hereo8, *he ins*an* case sho)l+ be +is*in-)ishe+ 8rom *he 8irs* case An+ I +o no* belie,e *ha* *he respon+en*s ha,e s)ccess8)lly reb)**e+ *hese alle-a*ions /he :olici*or 0eneral relies solely on *he +ecision o8 *hen "inis*er 3ple, *he +ecision *he pe*i*ioners precisely re<ec* in ,iew o8 *he chan-es in *he con+i*ions o8 *he par*ies /he pri,a*e respon+en* on *he o*her han+ insis*s *ha* *hese prac*ices were *he same prac*ices *aken in*o acco)n* in AL. , :/A;FILC3 I8 *his were so, *he 3ple +ecision was silen* *hereon

TRAVEL TIME
RADA V NLRC (PHILNOR) 205 SCRA 69 REGALADO; 1992
NATURE :pecial ci,il Ac*ion 8or cer*iorari *o re,iew ;L%C +ecision FACTS - Gilario %a+a was hire+ by pri,a*e respon+en* Philnor as +ri,er )n+er a BCon*rac* o8 $mploymen* 8or a De8ini*e Perio+D in connec*ion wi*h PhilnorEs con*rac* wi*h *he "anila ;or*h $(press $(*ension /he ori-inal con*rac* was 8or a perio+ o8 abo)* 2A mon*hs e88ec*i,e 5)ly 1, 19II D)e *o +elays in *he pro<ec*, *he pe*i*ioner was rehire+ )n+er a secon+ con*rac* 8or a perio+ o8 *en mon*hs Prior *o *he en+ o8 *he secon+ con*rac* an+ as *he pro<ec* remaine+ )ncomple*e+, pe*i*ioner was a-ain o88ere+ ano*her con*rac* 8or ano*her perio+ o8 19 mon*hs /his *hir+ con*rac* was e(*en+e+ 8or se,eral *imes a-ain +)e *o +elays in *he pro<ec* /he las* e(*ension was 8or a perio+ o8 *hree mon*hs 8rom 3c*ober 1 196H *o December 31m 196H As *he pro<ec* was in 8ac* comple*e+ a* *he en+ o8 *he en+ o8 *he 8inal e(*ension , pe*i*ioner so)-h* Bpersonnel Clearance 8rom *he company A* *ha* *ime, he also recei,e+ *he cash e=)i,alen* o8 his )nse+ lea,es an+ 8inancial assis*ance Also a* *ha* *ime, *he pe*i*ioner si-ne+ a %elease, 1ai,er an+ Y)i*claim - %a+a, on "ay 20, 196I, 8ile+ be8ore *he ;L%C a complain* a-ains* pri,a*e respon+en* 8or nonpaymen* o8 separa*ion pay

Labor Law 1
an+ o,er*ime /his complain* was s)bse=)en*ly amen+e+ *o incl)+e alle-a*ion o8 ille-al *ermina*ion - /he labor arbi*er 8o)n+ 8or *he pe*i*ioner b)* *his was re,erse+ by *he ;L%C Gence *he appeal *o *he :C ISSUE 1 13; *he pe*i*ioner was a permanen* employee o8 *he pri,a*e respon+en* 2 13; *he pe*i*ioner is en*i*le+ *o o,er*ime pay 8or *hree ho)rs per work +ay HELD 1 ;3 - /he Co)r* r)le+ *ha* *he pe*i*ioner was a pro<ec* employee an+ *h)s his perio+ o8 employmen* was 8i(e+ 8or a speci8ic pro<ec* or )n+er*akin- 3nce *he speci8ic pro<ec* or )n+er*akinhas been comple*e+, *he ser,ices o8 *he employee no* beinre=)ire+, *he employmen* is *ermina*e+, s)b<ec* only *o *he obli-a*ion o8 *he employer *o ren+er a repor* on *he *ermina*ion o8 *he employmen* 2 &$: - I* was *he <ob o8 %a+a *o pick )p an+ +rop o88 employees o8 *he pro<ec* a* cer*ain speci8ie+ poin*s alon- $D:A Gence *he *ime he spen* in +oin- *his work sho)l+ be incl)+e+ in +e*erminin*he n)mber o8 ho)rs he ha+ worke+ %a+a is hence en*i*le+ *o *he o,er*ime pay claime+ INote O#%ina#i)*. t"e t#a$e) ti(e o? e(p)o*ees ?#o( "o'se to p)a+e o? -o#G an% $i+e $e#sa is not in+)'%e% as pa#t o? ti(e -o#Ge%/ Ti(e o? -o#G sta#ts -"en t"e e(p)o*ee #epo#ts at t"e p)a+e o? -o#Gan% en%s -"en "e )ea$es t"e sa(e p)a+e/J Disposition :)b<ec* *o *he mo+i8ica*ion wih re-ar+ *he o,er*ime pay, *he +ecision o8 *he ;L%C is a88irme+

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- P%A;0A; is now be8ore )s imp)*in- 0%AK$ A#.:$ 3F DI:C%$/I3; on *he par* o8 ;L%C !a' +eclarin- *ha* he ren+ere+ only 8o)r ho)rs an+ no* *wel,e ho)rs o8 work, an+ !b' a88irmin*he mone*ary awar+ - As proo8 o8 pe*i*ionerEs ac*)al ho)rs o8 work, "A:A0A;A s)bmi**e+ *he DAIL& /I"$ %$C3%D: alle-e+ly si-ne+ by *he P%A;0A; himsel8 showin- *ha* he only worke+ 8o)r ho)rs +aily - P%A;0A; ar-)es *ha* *hese +aily *ime recor+s were 8alsi8ie+ 8or *he simple reason *ha* he was no* re=)ire+ *o s)bmi* one Ge 8)r*her s*resse+ *ha*, ass)min- s)ch +oc)men*s e(is*, i*s a)*hen*ici*y an+ +)e e(ec)*ion are =)es*ionable an+ o8 +o)b*8)l so)rce ISSUE 13; ;L%C erre+ in 8in+in- Pran-anEs work ho)rs *o be 8o)r ho)rs ins*ea+ o8 *wel,e HELD Ratio "a**ers concernin- an employeeEs ac*)al ho)rs o8 work are wi*hin *he ambi* o8 mana-emen* prero-a*i,e Gowe,er, when an employer alle-es *ha* his employee works less *han *he normal ho)rs o8 employmen* as pro,i+e+ 8or in *he law, he bears *he b)r+en o8 pro,in- his alle-a*ion wi*h clear an+ sa*is8ac*ory e,i+ence Reasoning - Fin+in-s o8 8ac* o8 =)asi-<)+icial bo+ies like *he ;L%C, par*ic)larly when *hey coinci+e wi*h *hose o8 *he Labor Arbi*er, are accor+e+ wi*h respec* e,en 8inali*y i8 s)ppor*e+ by s)bs*an*ial e,i+ence :)bs*an*ial e,i+ence is +e8ine+ as s)ch amo)n* o8 rele,an* e,i+ence which a reasonable min+ mi-h* accep* as a+e=)a*e *o <)s*i8y a concl)sion Absen* s)ch =)an*)m o8 e,i+ence, *he Co)r* is no* precl)+e+ 8rom makini*s own in+epen+en* e,al)a*ion o8 8ac*s - ;L%C, in +eclarin- *ha* P%A;0A;only worke+ 8or 8o)r ho)rs, relie+ solely on *he s)ppose+ +aily *ime recor+s o8 *he pe*i*ioner s)bmi**e+ by "A:A0A;A 1e, howe,er, are o8 *he opinion *ha* *hese +oc)men*s canno* be consi+ere+ s)bs*an*ial e,i+ence as *o concl)+e *ha* pe*i*ioner only worke+ 8or 8o)r ho)rs - As P%A;0A;E: employer, "A:A0A;A has )nlimi*e+ access *o all rele,an* +oc)men*s an+ recor+s on *he ho)rs o8 work o8 *he pe*i*ioner &e*, e,en as i* insis*s *ha* pe*i*ioner only worke+ 8or 8o)r ho)rs an+ no* *wel,e, no employmen* con*rac*, payroll, no*ice o8 assi-nmen* or pos*in-, cash ,o)cher or any o*her con,incin- e,i+ence which may a**es* *o *he ac*)al ho)rs o8 work o8 *he pe*i*ioner were e,en presen*e+ Ins*ea+, wha* *he pri,a*e respon+en* o88ere+ as e,i+ence were only pe*i*ionerEs +aily *ime recor+, which *he la**er ca*e-orically +enie+ e,er accomplishin-, m)ch less si-nin- +aily *ime recor+ showe+ *ha* P%A;0A; s*ar*e+ work a* 10P" an+ wo)l+ lea,e his pos* a* e(ac*ly 2A" 3b,io)sly, s)ch )n,aryin- recor+in- o8 a +aily *ime recor+ is improbable an+ con*rary *o h)man e(perience I* is impossible 8or an employee *o arri,e a* *he workplace an+ lea,e a* e(ac*ly *he same *ime, +ay in +ay o)* /he ,ery )ni8ormi*y an+ re-)lari*y o8 *he en*ries are Bba+-es o8 )n*r)*h8)lness an+ as s)ch in+ices o8 +)bie*y - Personnel +a*a shee* o8 *he P%A;0A;, +)ly si-ne+ by *he 8ormerEs opera*ion mana-er, i* shows on i*s 8ace *ha* *he la**erEs ho)rs o8 work are 8rom IP" *o IA" or *wel,e ho)rs a +ay Gence, "A:A0A;A is es*oppe+ 8rom assailin- *he con*en*s o8 i*s own +oc)men*s - a**en+ance shee*s o8 Ca* Go)se #ar an+ %es*a)ran* showe+ *ha* P%A;0A; worke+ 8rom I>00 p m *o I>00 a m +aily, +oc)men*s which were ne,er rep)+ia*e+ by "A:A0A;A - As is well-se**le+, i8 +o)b*s e(is* be*ween *he e,i+ence presen*e+ by *he employer an+ *he employee, *he scales o8 <)s*ice m)s* be *il*e+ in 8a,or o8 *he employee :ince i* is a *ime-honore+ r)le *ha* in con*ro,ersies be*ween a laborer an+ his mas*er, +o)b*s reasonably arisin- 8rom *he e,i+ence, or in *he in*erpre*a*ion o8 a-reemen*s an+ wri*in-s sho)l+ be resol,e+ in *he 8ormerEs 8a,or Disposition ins*an* pe*i*ion is hereby 0%A;/$D ;L%C +ecision on 5)ly 31, 1997 is hereby KACA/$D 1ha*e,er money claims +)e *o *he pe*i*ioner shall be comp)*e+ on *he basis o8 a

ENTRY TIME CARDS

PRANGAN V NLRC (MASAGANA SECURITY SERVICES CORP, PADILLA) 289 SCRA 142 ROMERO; A-)./ 15, 1998
FACTS 1 ;o,ember A, 1960 - "A:A0A;A :$C.%I/& :$%KIC$: C3%P hire+ P%A;0A; as one o8 i*s sec)ri*y -)ar+s assi-ne+ *o *he Ca* Go)se #ar an+ %es*a)ran* wi*h a mon*hly salary o8 P2,000 00 )n*il i*s clos)re on A)-)s* 31, 1993 - "ay A, 199A - P%A;0A; 8ile+ a complain* a-ains* "A:A0A;A 8or )n+erpaymen* o8 wa-es, non-paymen* o8 salary 8rom A)-)s* 17-31, 1993, o,er*ime pay, premi)m pay 8or holi+ay, res* +ay, ni-h* shi8* +i88eren*ial, )ni8orm allowance, ser,ice incen*i,e lea,e pay an+ 13*h mon*h pay 8rom *he year 1990 *o 1993 - "A:A0A;A re<ec*e+ P%A;0A;E: claim alle-in- i* merely ac*e+ as an a-en* o8 *he la**er in sec)rin- his employmen* a* *he Ca* Go)se #ar an+ %es*a)ran* /h)s, *he liabili*y 8or *he claims o8 *he pe*i*ioner sho)l+ be char-e+ *o Ca* Go)se #ar an+ i*s owner, bein- his +irec* employer - Labor Arbi*er W br)she+ asi+e "A:A0A;AE: con*en*ion *ha* i* was merely an a-en* o8 *he pe*i*ioner an+ or+ere+ *o pay wi*hin 10 +ays P9,932 17 premi)m pay 8or holi+ay an+ res* +ays, ni-h* shi8* +i88eren*ial, ser,ice incen*i,e lea,e pay, 13*h mon*h pay, )ni8orm allowance, an+ )npai+ salary an+ +ismisse+ o*her claims ei*her 8or *he reason o8 prescrip*ion an+?or lack o8 meri* - P%A;0A; was no* sa*is8ie+ wi*h *he LAEs +ecision an+ he appeale+ *o ;L%C con*en+in- *ha* LA erre+ in concl)+in- *ha* he only worke+ 8or 8o)r ho)rs an+ no* *wel,e ho)rs a +ay #)*, ;L%C +ismisse+ his appeal 8or 8ail)re *o 8ile *he same wi*hin *en-+ay re-lemen*ary perio+ - P%A;0A; 8ile+ a "F% which, in *he Bin*eres* o8 <)s*ice,D was 8a,orably -ran*e+ by *he ;L%C res)l*in- in *he reins*a*emen* o8 his appeal #)* i* was shor*-li,e+ as *he appeal was e,en*)ally +ismisse+ 8or lack o8 meri*

Labor Law 1
*wel,e-ho)r +aily work sche+)le For *his p)rpose, *he case is hereby %$"A;D$D *o *he Labor Arbi*er 8or imme+ia*e recomp)*a*ion o8 sai+ claims in accor+ance wi*h *he 8ore-oin8in+in-s

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e,a+e+ *he respon+en*2s company 8inancial obli-a*ion *o *he pe*i*ioner Disposition Pe*i*ion PA%/L& 0%A;/$D ;icario awar+e+ o,er*ime pay, b)* mana-er hel+ no* *o be soli+arily liable wi*h corpora*ion

NICARIO V NLRC (MANCAO) 190 SCRA 600 ROMERO; S'-#'3(') 1$, 1998
NATURE special ci,il ac*ion 8or cer*iorari *o re,iew +ecision o8 ;L%C FACTS - ;icario was an employee o8 "ancao :)permarke* !which was mana-e+ by An*onio "ancao' :he was *ermina*e+, an+ she 8ile+ a complain* 8or ille-al +ismissal, wi*h prayer 8or backwa-es, o,er*ime pay, an+ )npai+ wa-es - :he alle-es *ha* she repor*e+ *o work e,ery+ay 8rom I>30am *ill I>30pm !12 hrs a +ay', *h)s ren+erin- o,er*ime work 8or Ahrs each +ay - /he labor arbi*er awar+e+ her 3/ pay, by *akin- <)+icial no*ice o8 *he 8ac* *ha* all "ancao es*ablishmen*s opera*e 8rom 6am *il 6pm 3n appeal by *he s)permarke* *o *he ;L%C, *he commission +ele*e+ *he awar+ 8or 3/ pay, -i,in- cre+ence *o *he +aily *ime recor+s !D/%s' presen*e+ by *he company, which showe+ *ha* ;icario worke+ 8or 6 hrs a +ay only, 8rom 9am12nn an+ 2pm-Ipm, each +ay Also, *he ;L%C absol,e+ *he liabili*y o8 *he mana-er ;icario appeale+ *o *he :C ISSUES 1 13; ;icario m)s* be -i,en o,er*ime pay 2 13; *he mana-er m)s* be hel+ soli+arily liable wi*h *he corpora*ion HELD 1 &$: Ratio /he Daily /ime %ecor+ wi*h )ni8orm en*ries +ay in an+ +ay o)*, canno* be -i,en m)ch cre+ence Reasoning - 1hile *he s)permarke* s)bmi**e+ *he +aily *ime recor+s o8 ;icario *o show *ha* she ren+ere+ work 8or only 6hrs a +ay, i* +i+ no* re8)*e nor seek *o +ispro,e *he <)+icial no*ice *aken by *he Labor Arbi*er *ha* "ancao es*ablishmen*s, incl)+in- *he es*ablishmen* where ;Icario worke+, opens 12 hrs a +ay, openin- a* 6>00 a m an+ closin- a* 6>00 p m In e,al)a*in- *he e,i+en*iary ,al)e o8 +aily *ime recor+s, especially *hose which show )ni8orm en*ries wi*h re-ar+ *o *he ho)rs o8 work ren+ere+ by an employee, *he co)r* has r)le+ *ha* Bs)ch )n,aryin- recor+in- o8 a +aily *ime recor+ is improbable an+ con*rary *o h)man e(perience I* is impossible 8or an employee *o arri,e a* *he workplace an+ lea,e a* e(ac*ly *he same *ime, +ay in +ay o)* /he )ni8ormi*y an+ re-)lari*y o8 *he en*ries are 2ba+-es o8 )n*r)*h8)lness an+ as s)ch in+ices o8 +)bie*y D 3n *he o*her han+, *he s)permarke* 8aile+ *o presen* s)bs*an*ial e,i+ence, o*her *han *he +isp)*e+ D/%s, *o pro,e *ha* ;icario in+ee+ worke+ 8or only 6 hrs a +ay 2 ;3 Ratio /here appearin- *o be no e,i+ence *ha* An*onio "ancao ac*e+ malicio)sly or +elibera*ely in *he non-paymen* o8 bene8i*s *o ;icarion, he canno* he hel+ <oin*ly an+ se,erally liable wi*h "ancao s)permarke* Reasoning - /he -eneral r)le is *ha* o88icers o8 a corpora*ion are no* personally liable 8or *heir o88icial ac*s )nless i* is shown *ha* *hey ha,e e(cee+e+ *heir a)*hori*y Gowe,er, *he le-al 8ic*ion *ha* a corpora*ion has a personali*y separa*e an+ +is*inc* 8rom s*ockhol+ers an+ members may be +isre-ar+e+ i8 i* is )se+ as a means *o perpe*)a*e 8ra)+ or an ille-al ac* or as a ,ehicle 8or *he e,asion o8 an e(is*in- obli-a*ion, *he circ)m,en*ion o8 s*a*)*es, or *o con8)se le-i*ima*e iss)es - In *his case, *here is no showin- *ha* An*onio "ancao, as mana-er o8 respon+en* company, +elibera*ely an+ malicio)sly

AKLAN ELECTRIC COOP INC V NLRC

5.05 MEAL PERIOD

MEAL TIME - FREE TIME
PAN AMERICAN WORLD AIRWAYS SYSTEM (PHILS) V PAN AMERICAN EMPLOYEES ASSOCIATION 1 SCRA 52$ RE4ES; &'() a)y 20, 1961
NATURE Appeal by cer*iorari 8rom *he +ecision o8 *he Co)r* o8 In+)s*rial %ela*ions FACTS 1 A8*er 8ailin- *o reach a compromise wi*h *heir company, PA; A" workers 8ile+ a case a-ains* PA; A" PGILIPPI;$: *o seek re+ress 8or *heir -rie,ances a* *he workplace /hey +eman+e+ paymen* o8 o,er*ime compensa*ion, incl)sion in *he comp)*a*ion o8 o,er*ime pay *he one-ho)r meal perio+ +)rino,er*ime, a+op*ion o8 s*rai-h* ei-h* ho)r shi8* incl)si,e o8 *he meal perio+ - I* appears *ha* mos* o8 *heir -rie,ances were a++resse+ by *he Co)r* o8 In+)s*rial %ela*ions promp*in- *he mana-emen* *o make *his appeal ISSUES 1 13; CI% ha+ <)ris+ic*ion o,er claims o8 o,er*ime pay 2 13; *he one-ho)r meal perio+ sho)l+ be consi+ere+ as o,er*ime work HELD 1 &$: Ratio /he In+)s*rial Co)r* may properly *ake co-ni4ance o8 o,er*ime claims, i8 a* *he *ime o8 *he pe*i*ion, *he complainan*s were s*ill in *he ser,ice o8 *he employer, or, ha,in- been separa*e+ 8rom s)ch ser,ice, sho)l+ ask 8or reins*a*emen*@ o*herwise, s)ch claims sho)l+ be bro)-h* be8ore *he re-)lar co)r*s Reasoning - o,er*ime compensa*ion were s*ill in *he ser,ice o8 *he company when *he case was 8ile+, *he <)ris+ic*ion o8 *he Co)r* o8 In+)s*rial %ela*ions canno* be assaile+ In 8ac*, since i* is no* pre*en+e+ *ha*, *herea8*er, *he complainan*s were +ischar-e+ or o*herwise *ermina*e+ *heir rela*ionship wi*h *he company 8or any reason, all o8 sai+ complainan*s co)l+ s*ill be wi*h *he company )p *o *he presen* 2 ;3 Ratio /he one-ho)r meal perio+ shall be consi+ere+ as par* o8 o,er*ime work i8 *he e,i+ence shows *ha* +)rin- *ha* perio+, *he company may call res*in- employees *o ren+er some ser,ices

Labor Law 1
Reasoning - Pe*i*ioner herein claims *ha* *he one-ho)r meal perio+ sho)l+ no* be consi+ere+ as o,er*ime work !a8*er +e+)c*in- 1H min)*es', beca)se *he e,i+ence showe+ *ha* complainan*s co)l+ res* comple*ely an+ were no* in any manner )n+er *he con*rol o8 *he company +)rin- *ha* perio+ /he co)r* below 8o)n+, on *he con*rary, *ha* +)rin- *he so-calle+ meal perio+, *he mechanics were re=)ire+ *o s*an+ by 8or emer-ency work@ *ha* i8 *hey happene+ no* *o be a,ailable when calle+, *hey were repriman+e+ by *he lea+man@ *ha* as in 8ac* i* happene+ on many occasions, *he mechanics ha+ been calle+ 8rom *heir meals or *ol+ *o h)rry )p ea*in- *o per8orm work +)rin- *his perio+ Far 8rom bein- )ns)ppor*e+ by s)bs*an*ial e,i+ence, *he recor+ clearly con8irms *he abo,e 8ac*)al 8in+in-s o8 *he In+)s*rial Co)r* - /he In+)s*rial Co)r*2s or+er 8or permanen* a+op*ion o8 a s*rai-h* 6-ho)r shi8* incl)+in- *he meal perio+ was b)* a conse=)ence o8 i*s 8in+in- *ha* *he meal ho)r was no* one o8 comple*e res*, b)* was ac*)ally a work ho)r, since, 8or i*s +)ra*ion, *he laborers ha+ *o be on rea+y call 38 co)rse, i8 *he Company prac*ices in *his re-ar+ sho)l+ be mo+i8ie+ *o a88or+ *he mechanics a real res* +)rin- *ha* ho)r !8 e( , by ins*allinan en*irely +i88eren* emer-ency crew, or any similar arran-emen*', *hen *he mo+i8ica*ion o8 *his par* o8 *he +ecision may be so)-h* 8rom *he Co)r* below As *hin-s now s*an+, we see no warran* 8or al*erin- *he +ecision Disposition /he <)+-men* appeale+ 8rom is a88irme+ Cos*s a-ains* appellan*

A2010

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e,enin- )pon bein- in8orme+ o8 *he emer-ency PAL +eci+e+ *o s)spen+ pri,a*e respon+en* 8or *hree mon*hs - Pri,a*e respon+en* 8ile+ a complain* 8or ille-al s)spension a-ains* pe*i*ioner - Labor Arbi*er %om)l)s A Pro*asio ren+ere+ a +ecision +eclarin- *he s)spension o8 pri,a*e respon+en* ille-al - Pe*i*ioner appeale+ *o *he ;L%C /he ;L%C, howe,er, +ismisse+ *he appeal ISSUES 1 13; *he 3-mon*h s)spension o8 pri,a*e respon+en* sho)l+ be n)lli8ie+ +espi*e *he 8ac* *ha* *he pri,a*e respon+en* has commi**e+ an o88ense *ha* warran*e+ *he imposi*ion o8 +isciplinary ac*ion 2 13; moral +ama-es sho)l+ be awar+e+ HELD 1 &$: Ratio /he ei-h*-ho)r work perio+ +oes no* incl)+e *he meal break ;owhere in *he law may i* be in8erre+ *ha* employees m)s* *ake *heir meals wi*hin *he company premises $mployees are no* prohibi*e+ 8rom -oin- o)* o8 *he premises as lon- as *hey re*)rn *o *heir pos*s on *ime Reasoning - A63 an+ 6H LC rea+> Ar* 63 ;ormal ho)rs o8 work Q /he normal ho)rs o8 work o8 any employee shall no* e(cee+ ei-h* ho)rs a +ay Geal*h personnel in ci*ies an+ m)nicipali*ies wi*h a pop)la*ion o8 a* leas* one million or in hospi*als an+ clinics wi*h a be+ capaci*y o8 a* leas* one h)n+re+ shall hol+ re-)lar o88ice ho)rs 8or ei-h* ho)rs a +ay, 8or 8i,e +ays a week, ... Ar* 6H "eal perio+s Q :)b<ec* *o s)ch re-)la*ions as *he :ecre*ary o8 Labor may prescribe, i* shall be *he +)*y o8 e,ery employer *o -i,e his employees no* less *han si(*y !70' min)*es *ime-o88 8or *heir re-)lar meals :ec I, %)le I, #ook III o8 *he 3mnib)s %)les Implemen*in- *he Labor Co+e 8)r*her s*a*es> :ec I "eal an+ %es* Perio+s Q $,ery employer shall -i,e his employees no* less *han one !1' ho)r *ime-o88 8or re-)lar meals - Pri,a*e respon+en* le8* *he clinic *ha* ni-h* only *o ha,e his +inner a* his ho)se, which was only a 8ew min)*es2 +ri,e away 8rom *he clinic Gis whereabo)*s were known *o *he n)rse on +)*y so *ha* he co)l+ be easily reache+ in case o8 emer-ency .pon bein- in8orme+ o8 "r Acos*a2s con+i*ion, pri,a*e respon+en* imme+ia*ely le8* his home an+ re*)rne+ *o *he clinic /hese 8ac*s belie pe*i*ioner2s claim o8 aban+onmen* 2 ;3 Ratio ;o* e,ery employee who is ille-ally +ismisse+ or s)spen+e+ is en*i*le+ *o +ama-es As a r)le, moral +ama-es are reco,erable only where *he +ismissal or s)spension o8 *he employee was a**en+e+ by ba+ 8ai*h or 8ra)+, or cons*i*)*e+ an ac* oppressi,e *o labor, or was +one in a manner con*rary *o morals, -oo+ c)s*oms or p)blic policy Reasoning - #a+ 8ai*h +oes no* simply mean ne-li-ence or ba+ <)+-men* I* in,ol,es a s*a*e o8 min+ +omina*e+ by ill will or mo*i,e I* implies a conscio)s an+ in*en*ional +esi-n *o +o a wron-8)l ac* 8or a +ishones* p)rpose or some moral obli=)i*y - *here is no showin- *ha* *he mana-emen* o8 pe*i*ioner company was mo,e+ by some e,il mo*i,e in s)spen+in- pri,a*e respon+en* I* s)spen+e+ pri,a*e respon+en* on an hones*, albei* erroneo)s, belie8 *ha* pri,a*e respon+en*2s ac* o8 lea,in*he company premises *o *ake his meal a* home cons*i*)*e+ aban+onmen* o8 pos* which warran*s *he penal*y o8 s)spension Disposition pe*i*ion is PA%/IALL& 0%A;/$D /he por*ion o8 *he assaile+ +ecision awar+in- moral +ama-es *o pri,a*e respon+en* is D$L$/$D All o*her aspec*s o8 *he +ecision are AFFI%"$D

PHILIPPINE AIRLINES INC V NLRC (PROTACIO, FABROS) 002 SCRA 582 PUNO; &'() a)y 2, 1999
NATURE Appeal 8rom *he +ecision o8 *he ;L%C FACTS - Pri,a*e respon+en* was employe+ as 8li-h* s)r-eon a* pe*i*ioner company Ge was assi-ne+ a* *he PAL "e+ical Clinic a* ;ichols an+ was on +)*y 8rom A>00 in *he a8*ernoon )n*il 12>00 mi+ni-h* - A* aro)n+ I>00 pm, one ni-h*, pri,a*e respon+en* le8* *he clinic *o ha,e his +inner a* his resi+ence, which was abo)* Hmin)*e +ri,e away A 8ew min)*es la*er, *he clinic recei,e+ an emer-ency call 8rom *he PAL Car-o :er,ices 3ne o8 i*s employees, "r "an)el Acos*a, ha+ s)88ere+ a hear* a**ack /he n)rse on +)*y, "r "erlino $)sebio, calle+ pri,a*e respon+en* a* home *o in8orm him o8 *he emer-ency /he pa*ien* arri,e+ a* *he clinic a* I>H0 pm an+ "r $)sebio imme+ia*ely r)she+ him *o *he hospi*al 1hen pri,a*e respon+en* reache+ *he clinic a* aro)n+ I>H1 pm, "r $)sebio ha+ alrea+y le8* wi*h *he pa*ien* "r Acos*a +ie+ *he 8ollowin- +ay PAL "e+ical Direc*or or+ere+ *he Chie8 Fli-h* :)r-eon *o con+)c* an in,es*i-a*ion /he Chie8 Fli-h* :)r-eon, in *)rn, re=)ire+ pri,a*e respon+en* *o e(plain why no +isciplinary sanc*ion sho)l+ be *aken a-ains* him Pri,a*e respon+en* asser*e+ *ha* he was en*i*le+ *o a 30 min meal break@ *ha* he imme+ia*ely le8* his resi+ence )pon beinin8orme+ by "r $)sebio abo)* *he emer-ency an+ he arri,e+ a* *he clinic a 8ew min)*es la*er@ *ha* "r $)sebio panicke+ an+ bro)-h* *he pa*ien* *o *he hospi*al wi*ho)* wai*in- 8or him - /he mana-emen* char-e+ pri,a*e respon+en* wi*h aban+onmen* o8 pos* while on +)*y In his answer, pri,a*e respon+en* rei*era*e+ *ha* he only le8* *he clinic *o ha,e his +inner a* home In 8ac*, he re*)rne+ *o *he clinic a* I>H1 in *he

5.06 O>ERTIME 3OR7 OFFSETTIN2 PROHI/ITION

AND

Labor Law 1
DEFINITION AND OVERTIME PAY RATIONALE =
PNB V PNB EMPLOYEES ASSOCIATION 115 SCRA 50$ BARREDO; 5 /y 00, 1982
NATURE Appeal 8rom +ecision o8 *he Co)r* o8 In+)s*rial %ela*ions !CI%' FACTS - P;# an+ P;# $mployees Associa*ion !P$"A' ha+ a +isp)*e re-ar+in- *he proper comp)*a*ion o8 o,er*ime pay P$"A wan*e+ *he cos* o8 li,in- allowance !-ran*e+ in 19H6' an+ lon-e,i*y pay !-ran*e+ in 1971' *o be incl)+e+ in *he comp)*a*ion P;# +isa-ree+ an+ *he 2 par*ies la*er wen* be8ore *he CI% *o resol,e *he +isp)*e - CI% +eci+e+ in 8a,or o8 P$"A an+ hel+ *ha* P;# sho)l+ comp)*e *he o,er*ime pay o8 i*s employees on *he basis o8 *he s)m *o*al o8 *he employeeEs basic salary or wa-e pl)s cos* o8 li,in- allowance an+ lon-e,i*y pay /he CI% relie+ on *he r)linin ;A1A:A , ;A1A:A Consoli+a*e+ .nions, which hel+ *ha* B8or p)rposes o8 comp)*in- o,er*ime compensa*ion, re-)lar wa-e incl)+es all paymen*s which *he par*ies ha,e a-ree+ shall be recei,e+ +)rin- *he work week, incl)+in- +i88eren*ia*e+ paymen*s 8or workin- a* )n+esirable *imes, s)ch as a* ni-h* an+ *he boar+ an+ lo+-in- c)s*omarily 8)rnishe+ *he employee D /his promp*e+ P;# *o appeal, hence *his case ISSUE 13; *he cos* o8 li,in- allowance an+ lon-e,i*y pay sho)l+ be incl)+e+ in *he comp)*a*ion o8 o,er*ime pay as hel+ by *he CI% HELD ;3 Ratio 3,er*ime pay is 8or e(*ra e88or* beyon+ *ha* con*empla*e+ in *he employmen* con*rac*@ a++i*ional pay -i,en 8or any o*her p)rpose canno* be incl)+e+ in *he basis 8or *he comp)*a*ion o8 o,er*ime pay - Absen* a speci8ic pro,ision in *he C#A, *he bases 8or *he comp)*a*ion o8 o,er*ime pay are 2 comp)*a*ions, namely> 1 13; *he a++i*ional pay is 8or e(*ra work +one or ser,ice ren+ere+ 2 13; *he same is in*en+e+ *o be permanen* an+ re-)lar, no* con*in-en* nor *emporary as a -i,en only *o reme+y a si*)a*ion which can chan-e any *ime Reasoning - Lon-e,i*y pay canno* be incl)+e+ in *he comp)*a*ion o8 o,er*ime pay 8or *he ,ery simple reason *ha* *he con*rary is e(pressly s*ip)la*e+ in *he C#A, which cons*i*)*es *he law be*ween *he par*ies - As re-ar+s cos* o8 li,in- allowance, *here is no*hin- in Commonweal*h Ac* AAA Mor B*he 6-ho)r Labor Law,D now Ar* 6I Labor Co+eN *ha* co)l+ <)s*i8y P$"AEs pos*)re *ha* i* sho)l+ be a++e+ *o *he re-)lar wa-e in comp)*in- o,er*ime pay C A AAA prescribes *ha* o,er*ime work shall be pai+ Ba* *he same ra*e as *heir re-)lar wa-es or salary, pl)s a* leas* 2HP a++i*ional D /he law +i+ no* +e8ine wha* is a re-)lar wa-e or salary 1ha* *he law emphasi4e+ is *ha* in a++i*ion *o Bre-)lar wa-e,D *here m)s* be pai+ an a++i*ional 2HP o8 *ha* Bre-)lar wa-eD *o cons*i*)*e o,er*ime ra*e o8 pay Par*ies were *h)s allowe+ *o a-ree on wha* shall be m)*)ally consi+ere+ re-)lar pay 8rom or )pon which a 2HP premi)m shall be base+ an+ a++e+ *o make)p o,er*ime compensa*ion - ;o r)le o8 )ni,ersal applica*ion *o o*her cases may be <)s*i8iably e(*rac*e+ 8rom *he ;A1A:A case CI% relies on *he par* o8 *he ;A1A:A +ecision where *he :C ci*e+ American +ecisions whose le-isla*ion on o,er*ime is a* ,ariance wi*h *he law in *his <)ris+ic*ion /he .: le-isla*ion consi+ers work in e(cess o8 8or*y ho)rs a week as o,er*ime@ whereas, wha* is

A2010

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Disini

-enerally consi+ere+ !$e# i+e i% )e P)ili""i%e( i( 8!#= i% eH&e(( !f )e #e:'la# - )!'#( a da,. I* is )n+ers*an+ably ma*erial *o re8er *o prece+en*s in *he .: 8or p)rposes o8 comp)*in- weekly wa-es )n+er a A0-ho)r week r)le, since *he par*ic)lar iss)e in,ol,e+ in ;A1A:A is *he con,ersion o8 prior weekly re-)lar earnin-s in*o +aily ra*es wi*ho)* allowin+imin)*ion or a++i*ion - /o apply *he ;A1A:A comp)*a*ion wo)l+ re=)ire a +i88eren* 8orm)la 8or each an+ e,ery employee I* wo)l+ re=)ire re8erence *o an+ con*in)e+ )se o8 in+i,i+)al earnin-s in *he pas*, *h)s m)l*iplyin- *he a+minis*ra*i,e +i88ic)l*ies o8 *he Company I* wo)l+ be c)mbersome an+ *e+io)s a process *o comp)*e o,er*ime pay an+ *his may a-ain ca)se +elays in paymen*s, which in *)rn co)l+ lea+ *o serio)s +isp)*es /o apply *his mo+e o8 comp)*a*ion wo)l+ re*ar+ an+ s*i8le *he -row*h o8 )nions *hemsel,es as Companies wo)l+ be irresis*ibly +rawn in*o +enyin-, new an+ a++i*ional 8rin-e bene8i*s, i8 no* *hose alrea+y e(is*in-, 8or 8ear o8 bloa*in- *heir o,erhea+ e(penses *hro)-h o,er*ime which, by reason o8 bein- )n8i(e+, becomes ins*ea+ a ,eri*able so)rce o8 irri*an* in labor rela*ions SSO$e# i+e Pa, Ra i!%ale 1hy is a laborer or employee who works beyon+ *he re-)lar ho)rs o8 work en*i*le+ *o e(*ra compensa*ion calle+, in *his enli-h*ene+ *ime, o,er*ime payJ Ferily, there can be no other reason than that he is made to wor# longer than what is commensurate with his agreed compensation for the statutorily fi&ed or voluntarily agreed hours of labor he is supposed to do! 5hen he thus spends additional time to his wor#, the effect upon him is multi$ faceted; he puts in more effort, physical and%or mental; he is delayed in going home to his family to enjoy the comforts thereof; he might have no time for rela&ation, amusement or sports; he might miss important pre$arranged engagements; etc! 't is thus the additional wor#, labor or service employed and the adverse effects just mentioned of his longer stay in his place of wor# that justify and are the real reasons for the e&tra compensation that is called overtime pay! SSO$e# i+e Pa, Defi%i i!% /he additional pay for service or wor# rendered or performed in e&cess of H hours a day by employees or laborers in employment covered by the H hour 2abor 2aw EC!8! OOO, now 8rt! HP 2abor CodeN and not e&empt from its requirements! 't is computed by multiplying the overtime hourly rate by the number of hours wor#ed in e&cess of eight! Disposition +ecision appeale+ 8rom is %$K$%:$D

CALTE! REGULAR EMPLOYEES V CALTE! (PHILS) INC 24$ SCRA 098 &ELICIANO; A ! "# 15, 1995
NATURE Pe*i*ion 8or cer*iorari FACTS - 3n 12 December 196H, pe*i*ioner .nion an+ Cal*e( !Philippines', Inc !Cal*e(' en*ere+ in*o a Collec*i,e #ar-aininA-reemen* !9196H C#A9' which was *o be in e88ec* )n*il mi+ni-h* o8 31 December 1966 /he C#A incl)+e+, amono*hers, *he 8ollowin- pro,ision> 9A%/ICL$ III G3.%: 3F 13%K In con8ormi*y wi*h Presi+en*ial Decree AA2, o*herwise known as *he Labor Co+e o8 *he Philippines, as amen+e+, *he re-)lar work week shall consis* o8 ei-h* !6' ho)rs per +ay, se,en !I' +ays, "on+ay *hro)-h :)n+ay, +)rin- which re-)lar ra*es o8 pay shall be pai+ in accor+ance wi*h Anne( # an+ wor# on the employee's one ':ay of 3est,' shall be considered a special wor# day, during which ':ay of 3est' rates of pay shall be paid as provided in 8nne& =! Daily workin- sche+)les shall be es*ablishe+ by mana-emen* in accor+ance wi*h *he re=)iremen*s o8 e88icien* opera*ions on the basis of eight BHD hours per day for any five BQD days! Pro,i+e+, howe,er,

Labor Law 1
employees re=)ire+ *o work in e&cess of forty BO*D hours in any wee# shall be compensa*e+ in accor+ance wi*h Anne( # o8 *his A-reemen* - :ome*ime in A)-)s* 1967, *he .nion calle+ Cal*e(2s a**en*ion *o alle-e+ ,iola*ions by Cal*e( o8 Anne( 9#9 o8 *he 196H C#A, e - non-paymen* o8 ni-h*-shi8* +i88eren*ial, non-paymen* o8 o,er*ime pay an+ non-paymen* a* 98irs* +ay-o88 ra*es9 8or work per8orme+ on a :a*)r+ay - Cal*e(Es In+)s*rial %ela*ions mana-er in8orme+ .nion *ha* +i88eren*ial paymen*s wo)l+ be *imely implemen*e+ - In *he implemen*a*ion o8 *he re-comp)*e+ claims, howe,er, no +i88eren*ial paymen* was ma+e wi*h respec* *o work per8orme+ on *he 8irs* 2 1?2 ho)rs on a :a*)r+ay .nion ins*i*)*e+ a complain* 8or )n8air labor prac*ice a-ains* Cal*e( alle-in- ,iola*ion o8 *he pro,isions o8 *he 196H C#A

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Pe*i*ioner .nion ha+ ne,er s)--es*e+ *ha* more *han 1 +ay o8 res* ha+ been a-ree+ )pon, an+ Cal*e( ha+ ne,er *rea*e+ Ar*icle III or any o*her por*ion o8 *he C#As as pro,i+in- *wo !2' +ays o8 res* - An anne& e(presses *he i+ea o8 <oinin- a smaller or s)bor+ina*e *hin- wi*h ano*her, lar-er or o8 hi-her impor*ance An anne( has a s)bor+ina*e role, wi*ho)* any in+epen+en* si-ni8icance separa*e 8rom *ha* *o which i* is *acke+ on Anne( 9#,9 in *he case a* bar, is one s)ch +oc)men* I* is no* a memoran+)m o8 amen+men*s or a co+icil con*ainin- a++i*ional or new *erms or s*ip)la*ions Anne( 9#9 canno* be cons*r)e+ as mo+i8yin- or al*erin- *he *erms e(presse+ in *he bo+y o8 *he a-reemen* con*aine+ in *he 196H C#A I* +i+ no* con8er any ri-h*s )pon employees represen*e+ by pe*i*ioner .nion@ nei*her +i+ i* impose any obli-a*ions )pon pri,a*e respon+en* Cal*e( In 8ac*, *he con*en*s o8 Anne( 9#9 ha,e no in*elli-ible si-ni8icance in an+ o8 *hemsel,es when consi+ere+ separa*ely 8rom *he 196H C#A Pe*i*ioner .nion also con*en+e+ *ha* pri,a*e respon+en* Cal*e( in *he ins*an* pe*i*ion was ,iola*in- *he s*a*)*ory prohibi*ion a-ains* o88-se**in- )n+er*ime 8or o,er*ime work on ano*her +ay 11 .nion co)nsel a**emp*e+ *o es*ablish *his char-e by asser*in- *ha* *he employees ha+ been re=)ire+ *o ren+er 9o,er*ime work9 on a :a*)r+ay b)* compensa*e+ only a* re-)lar ra*es o8 pay, beca)se *hey ha+ no* comple*e+ *he ei-h* !6'-ho)r work perio+ +aily 8rom "on+ay *hr) Fri+ay - O$e#ti(e -o#G consis*s o8 ho)rs worke+ on a -i,en +ay in e(cess o8 *he applicable work perio+, which here is ei-h* !6' ho)rs I* is no* eno)-h *ha* *he ho)rs worke+ 8all on +isa-reeable or incon,enien* ho)rs 'n order that wor# may be considered as overtime wor#, the hours wor#ed must be in e&cess of and in addition to the eight BHD hours wor#ed during the prescribed daily wor# period, or the forty BO*D hours wor#ed during the regular wor# wee# onday thru +riday! - In *he presen* case, )n+er *he 196H C#A, ho)rs worke+ on a :a*)r+ay +o no*, by *ha* 8ac* alone, necessarily cons*i*)*e o,er*ime work compensable a* premi)m ra*es o8 pay, con*rary *o pe*i*ioner2s asser*ion /hese are normal or re-)lar work ho)rs, compensable a* re-)lar ra*es o8 pay, as pro,i+e+ in *he 196H C#A@ )n+er *ha* C#A, :a*)r+ay is no* a res* +ay or a 9+ay o889 I* is only when an employee has been re=)ire+ on a :a*)r+ay *o ren+er work in e(cess o8 *he 8or*y !A0' ho)rs which cons*i*)*e *he re-)lar work week *ha* s)ch employee may be consi+ere+ as per8ormin- o,er*ime work on *ha* :a*)r+ay Disposition Pe*i*ion +ismisse+

- Petitione#s> C)ai(s W char-e+ Cal*e( wi*h shor*chan-in- i*s employees when Cal*e( compensa*e+ work per8orme+ on *he 8irs* 2 1?2 ho)rs o8 :a*)r+ay, an employees2 +ay o8 res*, a* re-)lar ra*es, when i* sho)l+ be payin- a* 9+ay o8 res*9 or 9+ay o889 ra*es W Cal*e( was ,iola*in- *he s*a*)*ory prohibi*ion a-ains* o88se**in- )n+er*ime 8or o,er*ime work on ano*her +ay /he employees ha+ been re=)ire+ *o ren+er 9o,er*ime work9 on a :a*)r+ay b)* compensa*e+ only a* re-)lar ra*es o8 pay, beca)se *hey ha+ no* comple*e+ *he ei-h* !6'-ho)r work perio+ +aily 8rom "on+ay *hr) Fri+ay - Respon%ent>s Co((ents W +enie+ *he acc)sa*ions o8 *he .nion I* a,erre+ *ha* :a*)r+ay was ne,er +esi-na*e+ as a +ay o8 res*, m)ch less a 9+ay-o889 W *he 196H C#A pro,i+e+ only 1 +ay o8 res* 8or employees a* *he "anila 388ice, as well as employees similarly si*)a*e+ a* *he Le-a4pi an+ "arin+)=)e #)lk Depo*s /his +ay o8 res*, accor+in- *o Cal*e( was :)n+ay - R')ing o? La,o# A#,ite# W r)le+ in 8a,or o8 pe*i*ioner .nion, while 8in+in- a* *he same *ime *ha* Cal*e( was no* -)il*y o8 any )n8air labor prac*ice - In in*erpre*in- Ar*icle III an+ Anne( 9#9 o8 *he 196H C#A, Labor Arbi*er concl)+e+ *ha* Cal*e(2s employees ha+ been -i,en *wo !2' +ays !ins*ea+ o8 one +ay' o8 res*, wi*h *he res)l* *ha* work per8orme+ on *he employee2s 8irs* +ay o8 res*, ,i4 :a*)r+ay, sho)l+ be compensa*e+ a* 9Firs* +ay-o889 ra*es - R')ing o? NLRC W ;L%C se* asi+e *he +ecision o8 Labor Arbi*er@ concl)sions o8 *he Labor Arbi*er were no* s)ppor*e+ by *he e,i+ence on recor+ - In in*erpre*in- *he pro,isions o8 *he 196H C#A, ;L%C concl)+e+ *ha* C#A -ran*e+ only one !1' +ay o8 res*, :)n+ay - /he .nion2s mo*ion 8or reconsi+era*ion was +enie+ e-,

MANILA TERMINAL CO INC V CIR [ ]

NO COMPUTATION FORMULA !ASIC CONTRACT

MANILA TERMINAL CO INC V CIR [ ]

ISSUE 13; Ar*icle III in rela*ion *o Anne( # o8 *he 196H C#A sho)l+ be in*erpre*e+ as -i,in- *he workers *wo +ays o8 res* !:a*)r+ay an+ :)n+ay', *h)s en*i*lin- *he workers *o B+ay o88D ra*es on work per8orme+ on a :a*)r+ay HELD ;3, *he in*en*ion o8 *he par*ies *o *he 196H C#A was *o pro,i+e *he employees wi*h only one !1' +ay o8 res* - *he )se o8 *he wor+ 9one9 +escribin- *he phrase 9day of rest Eof an employeeN9 emphasi4es *he 8ac* *ha* *he par*ies ha+ a-ree+ *ha* only a sin-le +ay o8 res* shall be sche+)le+ an+ shall be pro,i+e+ *o *he employee - con*rac* cla)ses -o,ernin- ho)rs o8 work in pre,io)s C#As e(ec)*e+ in 19I3, 19I7, 19I9 an+ 1962 con*aine+ pro,isions parallel i8 no* i+en*ical *o *hose se* o)* in Ar*icle III o8 *he 196H C#A In all *hese C#As !19I3, 19I7, 19I9, 1962', Ar*icle III pro,i+e *ha* only 9work on an employee2s one +ay o8 res*9 shall be pai+ on *he basis o8 9+ay o8 res* ra*es9

!UILT-IN COMPENSATION
ENGINEERING EQUIPMENT INC V MINISTER OF LABOR (ASPERA) 108 SCRA 616 AQUINO; S'-#'3(') 20, 1985
NATURE Pe*i*ion *o re,iew *he resol)*ion o8 *he "inis*er o8 Labor FACTS - "i-)el Aspera worke+ 8or $n-ineerin- $=)ipmen*, Inc in :a)+i Arabia 8or nearly a year 8rom April 27, 19II *o April 17, 19I6

Labor Law 1
- Ge ha+ a mon*hly salary o8 PIH0 !P670' wi*h a si(-+ay work week consis*in- o8 *en workin- ho)rs - Accor+in- *o his wri**en con*rac* o8 employmen*, he may be re=)ire+ *o work o,er*ime in e(cess o8 *he *en-ho)r work each +ay an+ *o work on res* +ays or on :a)+i Arabian holi+ays - Ge was also promise+ o,er*ime pay on *op o8 his PIH0 salary 8or work ren+ere+ in e(cess o8 wha* was re=)ire+ 8rom him as a minim)m - 5ona*han +e la Cr)4, *he +irec*or o8 $mploymen* :er,ices an+ *he ;L%C s)s*aine+ his claim an+ awar+e+ him *ha* amo)n* as o,er*ime pay /he 10 ho)r-a-week workloa+ was +eclare+ ,oi+ 8or -oin- a-ains* *he $i-h* Go)r Labor Law an+ sec*ion 6I o8 *he Co+e which s*a*es *ha* any work beyon+ 6 ho)rs a +ay sho)l+ be consi+ere+ o,er*ime work - Petitione#s> C)ai( W Aspera is a mana-erial employee an+ sho)l+ *h)s no* be en*i*le+ *o o,er*ime pay in accor+ance wi*h :ec*ion 62 o8 *he Labor Co+e W Aspera also si-ne+ a wri**en con*rac* wi*h a Bb)il*-inD o,er*ime pay in *he *en ho)r work+ay which mean* *ha* his basic mon*hly pay was a+<)s*e+ *o re8lec* *he hi-her amo)n* co,erin- *he -)aran*ee+ *wo-ho)r e(*ra *ime whe*her worke+ or )nworke+ W /he con*rac*s were s)bmi**e+ *o respon+en* 5ona*han +e la Cr)4 who appro,e+ o8 *he same - Respon%ents> Co((ents W Aspera worke+ 10 ho)rs +aily 8or 33H +ays an+ he claims *ha* his mon*hly salary sho)l+ correspon+ *o ei-h* ho)rs o8 +aily work an+ *ha* 8or *he a++i*ional *wo ho)rs +aily, he was en*i*le+ *o o,er*ime pay a* R1 2172 per ho)r or *o R61A 6H 8or 7I0 ho)rs +)rin- 33H workin- +ays ISSUE 13; *he "inis*er o8 Labor erre+ in awar+in- *he o,er*ime pay *o Aspera HELD &$: - De la Cr)4 ac*e+ wi*h lack o8 +iscre*ion an+ in e(cess o8 his <)ris+ic*ion when he awar+e+ *he o,er*ime pay *o Aspera - Ge himsel8 appro,e+ *he con*rac* e,en he knew o8 *he $i-h* Go)r Labor Law #eca)se o8 *ha* appro,al, pe*i*ioner $n-ineerin- $=)ipmen* Inc ac*e+ in -oo+ 8ai*h in en8orcin- *he con*rac* - Aspera also +i+ no* +eny *ha* he was a mana-erial employee Disposition /he resol)*ion o8 *he "3L$ is re,erse+ an+ se* asi+e AsperaEs complain* is +ismisse+ ;o cos*s

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+ays o8 :ep*ember U 3c*ober 1991 /his no*wi*hs*an+in-, pe*i*ioner a-ain 8aile+ *o s)bmi* col+ call repor*s 8or :ep*ember U 3c*ober 1992 Pe*i*ioner was re=)ire+ *o e(plain his inac*ion, wi*h a warnin- *ha* 8)r*her non-compliance wo)l+ res)l* in his *ermina*ion 8rom *he company In a reply, pe*i*ioner claime+ *ha* *he same was an hones* omission bro)-h* abo)* by his concen*ra*ion on o*her aspec*s o8 his <ob Ci*ylan+ 8o)n+ sai+ e(c)se ina+e=)a*e an+ s)spen+e+ him 8or *hree +ays, wi*h a similar warnin- ;o*wi*hs*an+in- *he a8oresai+ s)spension an+ warnin-, pe*i*ioner a-ain 8aile+ *o s)bmi* col+ call repor*s 8or Febr)ary 1993 Ge was ,erbally remin+e+ *o s)bmi* *he same an+ was e,en -i,en )p *o Febr)ary 1I, 1993 *o +o so Ins*ea+ o8 complyin- wi*h sai+ +irec*i,e, pe*i*ioner wro*e a no*e, B/3 G$LL 1I/G C3LD CALL:V 1G3 CA%$:JD an+ e(hibi*e+ *he same *o his co-employees - Pe*i*ioner recei,e+ a memoran+)m re=)irin- him *o e(plain why Ci*ylan+ sho)l+ no* make -oo+ i*s pre,io)s warnin- 8or his 8ail)re *o s)bmi* col+ call repor*s, as well as 8or iss)in- *he wri**en s*a*emen* a8oremen*ione+ Pe*i*ioner sen* a le**er-reply alle-in- *ha* his 8ail)re *o s)bmi* col+ call repor*s sho)l+ no* be +eeme+ as -ross ins)bor+ina*ion Ge +enie+ any knowle+-e o8 *he +ama-in- s*a*emen*, B/3 G$LL 1I/G C3LD CALL:VD - Fin+in- pe*i*ioner -)il*y o8 -ross ins)bor+ina*ion, Ci*ylan+ ser,e+ a no*ice o8 +ismissal )pon him Pe*i*ioner 8ile+ a complain* a-ains* Ci*ylan+ 8or ille-al +ismissal, ille-al +e+)c*ion, )n+erpaymen*, o,er*ime an+ res* +ay pay, +ama-es an+ a**orneyEs 8ees - /he labor arbi*er +ismisse+ *he pe*i*ion 8or lack o8 meri* 3n appeal, *he same was a88irme+ by *he ;L%C@ hence *he presen* reco)rse ISSUE 1 13; respon+en* ;L%C -ra,ely ab)se+ i*s +iscre*ion in no* 8in+in- *ha* pe*i*ioner was ille-ally +ismisse+ 2 13; respon+en* ;L%C -ra,ely ab)se+ i*s +iscre*ion in r)lin*ha* pe*i*ioner is no* en*i*le+ *o salary +i88eren*ials, backwa-es, separa*ion pay, o,er*ime pay, res* +ay pay, )npai+ commissions, moral an+ e(emplary +ama-es an+ a**orneyEs 8ees HELD .. ;3 Ratio $(cep* as pro,i+e+ 8or, or limi*e+ by, special laws, an employer is 8ree *o re-)la*e, accor+in- *o his +iscre*ion an+ <)+-men*, all aspec*s o8 employmen* D $mployers may, *h)s, make reasonable r)les an+ re-)la*ions 8or *he -o,ernmen* o8 *heir employees, an+ when employees, wi*h knowle+-e o8 an es*ablishe+ r)le, en*er *he ser,ice, *he r)le becomes a par* o8 *he con*rac* o8 employmen* I* is also -enerally reco-ni4e+ *ha* company policies an+ re-)la*ions, )nless shown *o be -rossly oppressi,e or con*rary *o law, are -enerally ,ali+ an+ bin+inon *he par*ies an+ m)s* be complie+ wi*h Reasoning - :ai+ company policy o8 re=)irin- col+ calls an+ *he concomi*an* repor*s *hereon is clearly reasonable an+ law8)l, s)88icien*ly known *o pe*i*ioner, an+ in connec*ion wi*h *he +)*ies which he ha+ been en-a-e+ *o +ischar-e /here is, *h)s, <)s* ca)se 8or his +ismissal - #ase+ on *he 8ore-oin-, we 8in+ pe*i*ioner -)il*y o8 will8)l +isobe+ience 1ill8)l +isobe+ience re=)ires *he conc)rrence o8 a* leas* *wo re=)isi*es> *he employeeEs assaile+ con+)c* m)s* ha,e been will8)l or in*en*ional, *he will8)lness beincharac*eri4e+ by a wron-8)l an+ per,erse a**i*)+e@ an+ *he or+er ,iola*e+ m)s* ha,e been reasonable, law8)l, ma+e known *o *he employee an+ m)s* per*ain *o *he +)*ies which he ha+ been en-a-e+ *o +ischar-e - 1ell se**le+ is *he dictum *ha* *he *win re=)iremen*s o8 no*ice an+ hearin- cons*i*)*e *he elemen*s o8 +)e process in *he +ismissal o8 employees /h)s, *he employer m)s* 8)rnish *he employee wi*h *wo wri**en no*ices be8ore *he *ermina*ion o8 employmen* can be e88ec*e+ /he 8irs* apprises *he employee o8 *he par*ic)lar ac*s or omissions 8or which his +ismissal is

PROOF OF WORK
LAGATIC V NLRC 285 SCRA 251 ROMERO; 5a7 a)y 28, 1998
NATURE Pe*i*ion by cer*iorari FACTS - Pe*i*ioner %omeo La-a*ic was employe+ by Ci*ylan+ as a marke*in- specialis* Ge was *aske+ wi*h solici*in- sales 8or *he company, wi*h *he correspon+in- +)*ies o8 accep*in- call-ins, re8errals, an+ makin- clien* calls an+ col+ calls Col+ calls re8er *o *he prac*ice o8 prospec*in- 8or clien*s *hro)-h *he *elephone +irec*ory - In or+er *o assess col+ calls ma+e by *he sales s*a88, as well as *o +e*ermine *he res)l*s *hereo8, Ci*ylan+ re=)ires *he s)bmission o8 +aily pro-ress repor*s on *he same - 3n 3c*ober 22, 1991, Ci*ylan+ iss)e+ a wri**en repriman+ *o pe*i*ioner 8or his 8ail)re *o s)bmi* col+ call repor*s 8or cer*ain

Labor Law 1
so)-h*@ *he secon+ in8orms him o8 *he employerEs +ecision *o +ismiss him - /he chronolo-y o8 e,en*s clearly shows *ha* pe*i*ioner was ser,e+ wi*h *he re=)ire+ wri**en no*ices - /he re=)iremen* o8 a hearin- is complie+ wi*h as lon- as *here was an oppor*)ni*y *o be hear+, an+ no* necessarily *ha* an ac*)al hearin- be con+)c*e+ Pe*i*ioner ha+ an oppor*)ni*y *o be hear+ as he s)bmi**e+ a le**er-reply *o *he char-e Ge, howe,er, a++)ce+ no o*her e,i+ence on his behal8 In 8ac*, he a+mi**e+ his 8ail)re *o s)bmi* col+ call repor*s, prayin- *ha* *he same be no* consi+ere+ as -ross ins)bor+ina*ion - Denials are weak 8orms o8 +e8enses, par*ic)larly when *hey are no* s)bs*an*ia*e+ by clear an+ con,incin- e,i+ence 0i,en *he 8ore-oin-, we hol+ *ha* pe*i*ionerEs cons*i*)*ional ri-h* *o +)e process has no* been ,iola*e+ 2 ;3 - /here is no law which re=)ires employers *o pay commissions, an+ when *hey +o so, *here is no law which prescribes a me*ho+ 8or comp)*in- commissions /he +e*ermina*ion o8 *he amo)n* o8 commissions is *he res)l* o8 collec*i,e bar-aininne-o*ia*ions, in+i,i+)al employmen* con*rac*s or es*ablishe+ employer prac*ice :ince *he 8orm)la 8or *he comp)*a*ion o8 commissions was presen*e+ *o an+ accep*e+ by pe*i*ioner, s)ch prescribe+ 8orm)la is in or+er - Pe*i*ioner 8aile+ *o show his en*i*lemen* *o o,er*ime an+ res* +ay pay +)e, *o *he lack o8 s)88icien* e,i+ence as *o *he n)mber o8 +ays an+ ho)rs when he ren+ere+ o,er*ime an+ res* +ay work $n*i*lemen* *o o,er*ime pay m)s* 8irs* be es*ablishe+ by proo8 *ha* sai+ o,er*ime work was ac*)ally per8orme+, be8ore an employee may a,ail o8 sai+ bene8i* - Las*ly, wi*h *he 8in+in- *ha* pe*i*ionerEs +ismissal was 8or a <)s* an+ ,ali+ ca)se, his claims 8or moral an+ e(emplary +ama-es, as well as a**orneyEs 8ees, m)s* 8ail Disposition AFFI%"$D

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or-ani4in- a labor )nion in *he work premises as well as in 8ilin*he pe*i*ion 8or cer*i8ica*ion elec*ion be8ore *he Depar*men* o8 Labor /hey 8)r*her a,erre+ *ha* *hey were pai+ +aily wa-es ran-in- 8rom P61 00 *o P1AH 00 which were below *he minim)m 8i(e+ by law an+ *ha* *hey were re=)ire+ *o work si( !7' +ays a week 8rom 6 oEclock in *he mornin- *o I oEclock in *he e,eninwi*ho)* bein- pai+ 8or *he o,er*ime ;ei*her were *hey pai+ *heir ser,ice incen*i,e lea,e pay an+ 13*h mon*h pay - /he Labor Arbi*er r)le+ 8or *he pe*i*ioners 3n appeal by GI/$CG, *he ;L%C in i*s Decision o8 30 "ay 199I ,aca*e+ an+ se* asi+e *he Labor Arbi*erEs Decision an+ or+ere+ pe*i*ioners *o repor* back *o work, or i8 no lon-er 8easible, +irec*e+ GI-/$CG *o pay pe*i*ioners *heir separa*ion bene8i*s ISSUE 13; pe*i*ioners are en*i*le+ *o back wa-es an+ o*her mone*ary bene8i*s

SOCIAL SECURITY SYSTEM V CA VILLAR V NLRC (HI-TECH MANUFACTURING CORP) 001 SCRA 686 BELLOSILLO; May 11, 2000
NATURE Pe*i*ioners, in *his pe*i*ion 8or certiorari, assail 8or ha,in- been ren+ere+ wi*h -ra,e ab)se o8 +iscre*ion *he 30 "ay 199I Decision o8 *he ;a*ional Labor %ela*ions Commission !;L%C' ,aca*in- an+ se**in- asi+e *he Decision o8 *he Labor Arbi*er, as well as i*s 31 5)ly 199I %esol)*ion +enyin- reconsi+era*ion FACTS 1 GI-/$CG "A;.FAC/.%I;0 C3%P3%A/I3; !GI-/$CG', a corpora*ion +)ly or-ani4e+ an+ e(is*in- )n+er Philippine laws, is en-a-e+ in *he b)siness o8 man)8ac*)rin- car*ons 8or commercial p)rposes 3n +i88eren* +a*es, GI-/$CG hire+ pe*i*ioners *o per8orm ,ario)s <obs 8or *he company s)ch as sli**er machine opera*or, inkman, silk screen prin*er, *r)ck helper, r)bber +ye se**er, 8orkli8* opera*or an+ s*i*chinmachine opera*or - :ome*ime in "arch 199A pe*i*ioners, who were members o8 *he Fe+era*ion o8 Free 1orkers .nion, 8ile+ be8ore *he Depar*men* o8 Labor a pe*i*ion 8or cer*i8ica*ion elec*ion amon*he rank-an+-8ile employees o8 GI-/$CG /he pe*i*ion was -ran*e+ an+ a cer*i8ica*ion elec*ion was con+)c*e+ insi+e *he company premises on 31 5)ly 199A Gowe,er, pe*i*ioners los* in *he elec*ion as *he GI-/$CG employees ,o*e+ 8or 9;o .nion 9 - 3n 1 A)-)s* 199A an+ *he s)ccee+in- +ays *herea8*er, pe*i*ioners 8aile+ *o repor* 8or work /hey alle-e+ *ha* *hey were barre+ 8rom en*erin- *he premises o8 GI-/$CG@ hence, *hey imme+ia*ely 8ile+ be8ore *he Labor Arbi*er separa*e complain*s 8or ille-al +ismissal an+ labor s*an+ar+s claims a-ains* GI-/$CG, German / 0o, owner, an+ Carmen #elano, -eneral mana-er - Pe*i*ioners claime+ *ha* *hey were s)mmarily +ismisse+ 8rom employmen* by *he mana-emen* o8 GI-/$CG in re*alia*ion 8or

HELD Ratio /he b)r+en o8 pro,in- paymen* o8 mone*ary claims res*s on *he employer In 5imene4 , ;a*ional Labor %ela*ions Commission we hel+ As a -eneral r)le, one who plea+s paymen* has *he b)r+en o8 pro,in- i* $,en where *he plain*i88 m)s* alle-e non-paymen*, *he -eneral r)le is *ha* *he b)r+en res*s on *he +e8en+an* *o pro,e paymen*, ra*her *han on *he plain*i88 *o pro,e nonpaymen* /he +eb*or has *he b)r+en o8 showin- wi*h le-al cer*ain*y *ha* *he obli-a*ion has been +ischar-e+ wi*h paymen*/ 1 /he pe*i*ionersE claims 8or )n+erpaymen* o8 wa-es, 13*h mon*h pay an+ ser,ice incen*i,e lea,e pay sho)l+ be )phel+ - Pe*i*ioners e(ec)*e+ a @9'(/ 8++':8F'/ speci8yin- *heir +aily wa-es, posi*ions an+ perio+s o8 employmen*, which was ma+e *he basis o8 *he Labor Arbi*erEs comp)*a*ion o8 *he mone*ary awar+s All *ha* *he ;L%C nee+e+ *o +o was *o re8er *o *he pre,ailin- minim)m wa-e *o ascer*ain *he correc*ness o8 pe*i*ionersE claims A%d +!( i+"!# a% l,< )e 0'#de% !f "#!$i%: "a,+e% !f +!%e a#, &lai+( #e( ( !% )e e+"l!,e# - /he reason 8or *he r)le is *ha* *he per*inen* personnel 8iles, payrolls, recor+s, remi**ances an+ o*her similar +oc)men*s T which will show *ha* o,er*ime, +i88eren*ials, ser,ice incen*i,e lea,e an+ o*her claims o8 workers ha,e been pai+ T are no* in *he possession o8 *he worker b)* in *he c)s*o+y an+ absol)*e con*rol o8 *he employer /h)s, in choosin- no* *o presen* e,i+ence *o pro,e *ha* i* ha+ pai+ all *he mone*ary claims o8 pe*i*ioners, GI-/$CG 8aile+ once a-ain *o +ischar-e *he onus probandi Conse=)en*ly, we ha,e no choice b)* *o awar+ *hose claims *o pe*i*ioners

EMPLOYER O!LI1ATION
SOCIAL SECURITY SYSTEM V CA [ ]

5.07 NI2HT 3OR7

RATIONALE PRO2I!ITION
SHELL OIL CO. OF THE PHILS LTD V NATIONAL LABOR UNION 81 P2./ 015 BRIONES; 5 /y 26, 1948
NATURE Pe*i*ion 8or re,iew on cer*iorari

Labor Law 1
FACTS - Ac*in- on a pe*i*ion o8 *he company 9;a*ional 1ork .nion,9 *he Co)r* o8 In+)s*rial %ela*ions has +ic*a*e+ a +ecision in which, amon- o*hers *hin-s, *he pe*role)m 8irm is obli-e+ *o pay i*s laborers 8or work a* ni-h* a compensa*ion a++i*ional o8 Q*R on its regular salaries! I* seems *ha* *he company has nee+ o8 *he noc*)rnal ser,ice o8 a +e*ermine+ n)mber o8 laborers, since some o8 *he necessary *asks are +one a* ni-h* 8or *he s)pply o8 -asoline an+ l)brican*s, an+ 8or o*her nee+s /he company alle-es an+ ar-)es *ha* *hereEs no* any +isposi*ion *ha* a)*hori4es *he Co)r* o8 In+)s*rial %ela*ions *o or+er *he paymen* o8 a++i*ional compensa*ion *o laborers *ha* work a* ni-h*, b)*, on *he con*rary, *he law o8 *he Commonweal*h ;o* AAA e(emp*s all owners o8 similar obli-a*ion e,ery *ime *ha* in sai+ law *he cases are pro,i+e+ in which *he paymen* o8 9o,er*ime9 is comp)lsory, an+ amon- s)ch cases o8 o,er*ime +oes no* 8i-)re *he work a* ni-h* In *)rn, *he )nion main*ains *ha* *he law ;o* AAA o8 *he Commonweal*h *ha* is in,oke+ +oes no* ha,e any applica*ion al presen* case, *here8ore *he same one is o8 reach ine,i*ably limi*e+, bein- re8erre+ An+ e(cl)si,ely *o *he +ay ma(ima o8 work con*i+iano permi**e+ in *he in+)s*rial es*ablishmen*s Q *he +ay o8 6 ho)rs 3)r concl)sion is *ha* *he )nion has *he reason on i*s par* - Commonweal*h ;o AAA s*a*es> :$C/I3; 1 /he le-al workin- +ay 8or any person employe+ by ano*her shall be o8 no* more *han ei-h* ho)rs +aily 1hen *he work is no* con*in)o)s, *he *ime +)rin- which *he laborer is no* workin- an+ can lea,e his workin- place an+ can res* comple*ely shall no* be co)n*e+ :$C 3 1ork may be per8orme+ beyon+ ei-h* ho)rs a +ay in case o8 ac*)al or impen+in- emer-encies ca)se+ by serio)s acci+en*s, 8ire, 8loo+, *yphoon, ear*h=)ake, epi+emic, or o*her +isas*er or calami*y in or+er *o pre,en* loss *o li8e an+ proper*y or imminen* +an-er *o p)blic sa8e*y@ or in case )r-en* work *o be per8orme+ on *he machines, e=)ipmen*, or ins*alla*ions in or+er *o a,oi+ a serio)s loss which *he employer wo)l+ o*herwise s)88er, or some o*her <)s* ca)se o8 a similar na*)re@ b)* in all s)ch cases *he laborers an+ employees shall be en*i*le+ *o recei,e compensa*ion 8or *he o,er*ime work per8orme+ a* *he same ra*e as *heir re-)lar wa-es or salary, pl)s a* leas* *wen*y-8i,e per centum a++i*ional In case o8 na*ional emer-ency *he -o,ernmen* is empowere+ *o es*ablish r)les an+ re-)la*ions 8or *he opera*ion o8 *he plan*s an+ 8ac*ories an+ *o +e*ermine *he wa-es *o be pai+ *he laborers :$C A ;o person, 8irm, or corpora*ion, b)siness es*ablishmen* or place or cen*er o8 labor shall compel an employee or laborer *o work +)rin- :)n+ays an+ le-al holi+ays, )nless he is pai+ an a++i*ional s)m o8 a* leas* *wen*y-8i,e per centum o8 his re-)lar rem)nera*ion> Provided however, /ha* *his prohibi*ion shall no* apply *o p)blic )*ili*ies per8ormin- some p)blic ser,ice s)ch as s)pplyin-as, elec*rici*y, power, wa*er, or pro,i+in- means o8 *ranspor*a*ion or comm)nica*ion - /he lawyers o8 *he company ar-)es *ha* in *hese ar*ic)les *he cases are speci8ie+ in which paymen* o8 e(*ra o8 a++i*ional compensa*ion is a)*hori4e+> !A' in case o8 9o,er*ime9 or work o,er an+ abo,e *he ho)rs re-)la*e+ by reasons +an-ers o8 )r-ency beca)se o8 some +isas*er or acci+en*, or *o a,oi+ los* or *o repair *hem@ !b' in case o8 work by :)n+ays an+ 8es*i,als@ !c' in case o8 emer-ency, an+ no*hin- i* is necessary re8er a* work a* ni-h*@ *hen *he or+er *ha* *rea*s is ille-al, *here8ore no* *his a)*hori4e+ by *he law 9In *he absence o8 le-isla*ion a)*hori4in- *he paymen* o8 e(*ra compensa*ion 8or work a* ni-h*, *he Co)r* o8 In+)s*rial %ela*ions has no* *he power or a)*hori*y *o or+er *he pe*i*ioner company *o pay e(*ra compensa*ion 8or by i*s laborers a* ni-h* $(pressio )ni)s es* e(cl)sio al*eri)s 1here, in *he s*a*)*e e(pressly speci8ies *he cases where paymen* o8 e(*ra compensa*ion may be +eman+e+, e(*ra compensa*ion may be allowe+ in *hose cases only, an+ in no* o*hers /he pro,isions o8 *he Commonweal*h Ac* ;o* AAA canno* be enlar-e+ by implica*ion or o*herwise

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$(press)m 8aci* cessare *aci*)m /he ar-)men*a*ion is erronea /he Law ;o* AAA is no* applicable al presen* case, bein- e,i+en* *ha* *he same one has an ob<ec* I speci8y, *o know> !A' *o se* in 6 ho)rs *he +ay ma(ima o8 work@ !b' senalar cer*ain e(cep*ional cases in which *he work o)* o8 sai+ +ay can be a)*hori4e+@ !c' *o pro,i+e a bon)s, *ha* sho)l+ no* be less *han 2HP o8 *he salary *o re-)la*e, 8or *he 9o,er*ime9 or I work o,er an+ abo,e *he 6 ho)rs ISSUE 13; *he pe*role)m company is obli-a*e+ *o -i,e a++i*ional pay 8or i*s ni-h* workers HELD &$: Ratio /he ni-h* work *ha* *he company :hell re=)ires o8 i*s laborers is no* an 9o,er*ime9, in *he sense in which *his wor+ is employe+ in Commonweal*h Ac* AAA, b)* is a comple*e +ay o8 work, o8 6 ho)rs In o*her wor+s, *he work a* ni-h* is no* only )ne(ceso, prolon-acion or 9o,er*ime9 o8 *he re-)lar +aywork , b)* is ano*her *ype o8 work, absol)*ely in+epen+en* o8 *he +ay /here8ore *here are *wo shi8*s> *he shi8* o8 laborers *ha* work +)rin- *he +ay@ an+ *he shi8* o8 *he ones *ha* work a* ni-h* I* is no* s*ran-e *ha* *he le-isla*or ha,e no* incl)+e+ *his *ype o8 work amon- *he cases o8 9o,er*ime9 in *he abo,e-men*ione+ law ;o* AAA Reasoning - An+ wi*h respec* wi*h *he aprecia*ion *ha* *he work a* ni-h* is b)* hea,y an+ b)r+ensome *han *ha* o8 +ay an+, *here8ore, he +eser,es -rea*er rem)nera*ion, *here is no reason *o re,oke i* or *o al*er i* /here is no* possible ar-)men* a-ains* *he )ni,ersal 8ac* *ha* *he or+inary, normal, an+ re-)lar work is *ha* o8 +ay an+ *ha* *he work a* ni-h* is ,ery e(cep*ional an+ <)s*i8ie+ alone cer*ainly impera*i,ely ine,i*able mo*i,es - %easons o8 hy-iene, o8 me+icine, o8 morale, o8 c)l*)re, o8 sociolo-ia, *hey es*ablish wi*h one accor+ *ha* *he work a* ni-h* has many ob<ec*ions, an+ when *here is no* b)* reme+y *ha* *o ca)se is alone <)s* *ha* I am pai+ be**er *han )s)ally *o compensa*e hasa cer*ain poin* al workin- o8 s)ch ob<ec*ions I* m)s* be remembere+ *ha* i* is +is*inc*ly )nphysiolo-ical *o *)rn *he ni-h* in*o +ay an+ +epri,e *he bo+y o8 *he bene8icial e88ec*s o8 s)nshine /he h)man or-anism re,ol*s a-ains* *his proce+)re A++e+ *o ar*i8icial li-h*in- are re,erse+ an+ )nna*)ral *imes o8 ea*in-, res*in-, an+ sleepin- ")ch o8 *he in8eriori*y o8 ni-h*work can +o)b*less be *race+ *o *he 8ail)re o8 *he workers *o sec)re proper res* an+ sleep, by +ay #eca)se o8 inabili*y or *he lack o8 oppor*)ni*y *o sleep, ni-h*workers o8*en spen+ *heir +ays in per8ormin- +omes*ic +)*ies, <oinin- *he 8amily in *he mi++ay meal, 2*inkerin- abo)* *he place2, wa*chin*he baseball -ame, a**en+in- *he *hea*er or *akin- a ri+e in *he car I* is no* s*ran-e *ha* ni-h*workers *en+ *o be less e88icien* *han +ayworkers an+ lose more *ime !/he "ana-emen* o8 Labor %ela*ions, by 1a*kins U Do++, pa-e H2A ' W ;i-h*work Q ;i-h*work has -aine+ a meas)re o8 prominence in *he mo+ern in+)s*rial sys*em in connec*ion wi*h con*in)o)s in+)s*ries, *ha* is, in+)s*ries in which *he na*)re o8 *he processes makes i* necessary *o keep machinery an+ e=)ipmen* in cons*an* opera*ion $,en in con*in)o)s in+)s*ries *he *en+ency is +e8ini*ely in *he +irec*ion o8 F3.% shi8*s o8 7 ho)rs each, wi*h pro,ision 8or an a)*oma*ic chan-e o8 shi8* 8or all workers a* s*a*e+ in*er,als :ome +isc)ssion has *aken place wi*h re-ar+ *o *he len-*hs o8 *he perio+ any workers sho)l+ be allowe+ *o remain on *he ni-h* shi8* A weekly chan-e o8 shi8*s is common, specially where *hree or 8o)r shi8*s are in opera*ion@ in o*her cases *he chan-e is ma+e 8or*ni-h*ly or mon*hly@ in s*ill o*her ins*ances, no al*erna*ion is pro,i+e+ 8or, *he workers remainin- on +ay Q or ni-h*work permanen*ly, e(cep* where *emporary chan-es are ma+e 8or in+i,i+)al con,enience /here is sharp +i88erence o8 opinion concernin- *he rela*i,e meri*s o8 *hese sys*ems A+,oca*es o8 *he weekly chan-e o8 shi8*s con*en+ *ha* *he s*rain o8 ni-h*work an+ *he +i88ic)l*y o8 -e**in- a+e=)a*e sleep +)rin- *he +ay make i* )nwise 8or workers *o remain on *he9-ra,eyar+9 shi8* 8or more *han a

Labor Law 1
week a* a *ime 3pponen*s )r-e *ha* repea*e+ chan-es make i* more +i88ic)l* *o se**le +own *o ei*her kin+ o8 shi8* an+ *ha* a8*er *he 8irs* week ni-h*work becomes less *ryin- while *he abili*y *o sleep by +ay increases 1orkers *hemsel,es reac* in ,ario)s ways *o *he +i88eren* sys*ems /his m)ch, howe,er, is cer*ain> Few persons reac* 8a,orably *o ni-h*work, whe*her *he shi8* be con*in)o)s or al*erna*in- 3)*si+e o8 con*in)o)s in+)s*ries, ni-h*work can scarcely be <)s*i8ie+, an+, e,en in *hese, i* presen*s serio)s +isa+,an*a-es which m)s* be reco-ni4e+ in planin- 8or in+)s*rial e88iciency, s*abili4a*ion o8 *he workin- 8orce, *he promo*ion o8 in+)s*rial -oo+-will, an+ *he conser,a*ion o8 *he heal*h an+ ,i*ali*y o8 *he workers W ;i-h*work canno* be re-ar+e+ as +esirable, ei*her 8rom *he poin* o8 ,iew o8 *he employer or o8 *he wa-e earner I* is )neconomical )nless o,erhea+ cos*s are )n)s)ally hea,y Fre=)en*ly *he scale o8 wa-es is hi-her as an in+)cemen* *o employees *o accep* employmen* on *he ni-h* shi8*, an+ *he ra*e o8 pro+)c*ion is -enerally lower W /he lack o8 s)nli-h* *en+s *o pro+)ce anemia an+ *)berc)losis an+ *o pre+ispose *o o*her ills ;i-h*work brin-s increase+ liabili*y *o eyes*rain an+ acci+en* :erio)s moral +an-ers also are likely *o res)l* 8rom *he necessi*y o8 *ra,elin- *he s*ree*s alone a* ni-h*, an+ 8rom *he in*er8erence wi*h normal home li8e From an economic poin* o8 ,iew, moreo,er, *he in,es*i-a*ions showe+ *ha* ni-h*work was )npro8i*able, bein- in8erior *o +ay work bo*h in =)ali*y an+ in =)an*i*y 1here,er i* ha+ been abolishe+, in *he lon- r)n *he e88iciency bo*h o8 *he mana-emen* an+ o8 *he workers was raise+ F)r*hermore, i* was 8o)n+ *ha* ni-h*work laws are a ,al)able ai+ in en8orcin- ac*s 8i(in- *he ma(im)m perio+ o8 employmen* !Principles o8 Labor Le-isla*ion, by Commons an+ An+rews, A*h %e,ise+ $+i*ion, p 1A2 ' :pecial re-)la*ion o8 ni-h*work 8or a+)l* men is a compara*i,ely recen* +e,elopmen* :ome $)ropean co)n*ries ha,e a+op*e+ laws placin- special limi*a*ions on ho)rs o8 ni-h*work 8or men, an+ o*hers prohibi* s)ch work e(cep* in con*in)o)s processes !Principles o8 Labor le-isla*ion, A*h %e,ise+ $+i*ion by Common U An+rews, p 1AI ' W ;i-h*work has almos* in,ariably been looke+ )pon wi*h +is8a,or by s*)+en*s o8 *he problem beca)se o8 *he e(cessi,e s*rain in,ol,e+, especially 8or women an+ yo)n- persons, *he lar-e amo)n* o8 los* *ime conse=)en* )pon e(ha)s*ion o8 *he workers, *he a++i*ional s*rain an+ responsibili*y )pon *he e(ec)*i,e s*a88, *he *en+ency o8 e(cessi,ely 8a*i-)e+ workers *o 9keep -oin-9 on ar*i8icial s*im)lan*s, *he -eneral c)r*ailmen* o8 *ime 8or res*, leis)re, an+ c)l*)ral impro,emen*, an+ *he 8ac* *ha* ni-h* workers, al*ho)-h precl)+e+ *o an e(*en* 8rom *he ac*i,i*ies o8 +ay li8e, +o a**emp* *o en*er in*o *hese ac*i,i*ies, wi*h res)l*an* impairmen* o8 physical well-bein- I* is no* con*en+e+, o8 co)rse, *ha* ni-h*work co)l+ be abolishe+ in *he con*in)o)sprocess in+)s*ries, b)* i* is possible *o p)* s)ch in+)s*ries )pon a *hree- or 8o)r-shi8*s basis, an+ *o prohibi* ni-h*work 8or women an+ chil+ren !Labor2s Pro-ress an+ Problems, Kol I, p A7A, by Pro8essors "illis an+ "on*-omery ' W ;i-h*work Q Ci,ili4e+ peoples are be-innin- *o reco-ni4e *he 8ac* *ha* e(cep* in cases o8 necessi*y or in perio+s o8 -rea* emer-ency, ni-h*work is socially )n+esirable .n+er o)r mo+ern in+)s*rial sys*em, howe,er, ni-h*work has -rea*ly ai+e+ *he pro+)c*ion o8 commo+i*ies, an+ has o88ere+ a si-ni8ican* me*ho+ o8 c)**in- +own *he e,er-increasino,erhea+ cos*s o8 in+)s*ry /his res)l* has le+ employers *o belie,e *ha* s)ch work is necessary an+ pro8i*able Gere a-ain one mee*s a con8lic* o8 economic an+ social in*eres*s .n+er *hese circ)ms*ances i* is necessary *o +isco,er whe*her ni-h*work has +ele*erio)s e88ec*s )pon *he heal*h o8 laborers an+ *en+s *o re+)ce *he )l*ima*e s)pply o8 e88icien* labor I8 i* can pro,e+ *ha* ni-h*work a88ec*s a+,ersely bo*h *he =)ali*y an+ =)an*i*y o8 pro+)c*i,e labor, i*s +iscon*in)ance will )n+o)b*e+ly be sanc*ione+ by employers From a social poin* o8 ,iew, e,en a rela*i,ely hi-h +e-ree o8 e88iciency in ni-h* opera*ions m)s* be 8or8ei*e+ i8 i* is p)rchase+ wi*h rapi+ e(ha)s*ion o8 *he heal*h an+ ener-y o8 *he workers From an economic poin* o8 ,iew, ni-h*work may

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be necessary i8 *he employer is *o mee* *he +eman+ 8or his pro+)c*, or i8 he is *o main*ain his marke* in *he 8ace o8 increasin- compe*i*ion or mo)n*in- ,ariable pro+)c*ion cos*s W In+)s*rial e(perience has shown *ha* *he possession o8 e(*ra-or+inary physical s*ren-*h an+ sel8-con*rol 8acili*a*es *he re,ersal o8 *he or+inary ro)*ine o8 +ay work an+ ni-h* res*, wi*h *he li**le or no )n8a,orable e88ec* on heal*h an+ e88iciency .n)s)al ,i*ali*y an+ sel8-con*rol, howe,er, are no* common possessions I* has been 8o)n+ *ha* *he mos* serio)s obs*acle *o a re,ersal o8 *he ro)*ine is *he lack o8 sel8+iscipline "any ni-h* workers en*er in*o *he n)mero)s ac*i,i*ies o8 +ay li8e *ha* precl)+e sleep, an+ con*in)e *o a**emp* *o +o *heir work a* ni-h* $,i+ence -a*here+ by *he #ri*ish Geal*h o8 ")ni*ion 1orkers2 Commi**ee places permanen* ni-h* workers, whe*her <)+-e+ on *he basis o8 o)*p)* or loss o8 *ime, in a ,ery )n8a,orable posi*ions as compare+ wi*h +ay workers W :ys*ems o8 ni-h*work +i88er /here is *he con*in)o)s sys*em, in which employees labor by ni-h* an+ +o no* a**en+ *he es*ablishmen* a* all by +ay, an+ *he +iscon*in)o)s sys*em, in which *he workers chan-e *o *he +ay *)rn a* re-)lar in*er,als, )s)ally e,ery o*her week /here are, o8 co)rse, minor ,aria*ions in *hese sys*ems, +epen+in- )pon *he na*)re o8 *he in+)s*ry an+ *he wishes o8 mana-emen* :)ch bo+ies as *he #ri*ish Geal*h ")ni*ion 1orkers2 Commi**ee ha,e -i,en )s ,al)able concl)sions concernin*he e88ec* o8 ni-h*work Con*in)o)s ni-h*work is +e8ini*ely less pro+)c*i,e *han *he +iscon*in)o)s sys*em /he o)*p)* o8 *he con*in)o)s +ay shi8* +oes no* make )p 8or *his loss in pro+)c*ion W /here is, moreo,er, a marke+ +i88erence be*ween *he ra*es o8 o)*p)* o8 ni-h* an+ +ay shi8*s on *he +iscon*in)o)s plan In each case in,es*i-a*e+ *he in8eriori*y o8 ni-h* labor was +e8ini*ely es*ablishe+ /his in8eriori*y is e,i+en*ly *he res)l* o8 *he ni-h* worker2s 8ail)re *o sec)re proper amo)n*s o8 sleep an+ res* +)rin- *he +ay /he sys*em o8 con*in)o)s shi8*s, especially 8or women, is re-ar+e+ by all in,es*i-a*ors as )n+esirable 1omen on con*in)o)s ni-h*work are likely *o per8orm +omes*ic +)*ies, an+ *his a++e+ s*rain )n+o)b*e+ly acco)n*s 8or *he poorer res)l*s o8 *heir in+)s*rial ac*i,i*ies /he *en+ency *o +e,o*e *o am)semen* an+ o*her *hin-s *he *ime *ha* sho)l+ be spen* in res* an+ sleep is cer*ainly as common amon- men as amon- women workers an+ acco)n*s lar-ely 8or *he loss o8 e88iciency an+ *ime on *he par* o8 bo*h se(es in ni-h*work - /he case a-ains* ni-h*work, *hen, may be sai+ *o res* )pon se,eral -ro)n+s In *he 8irs* place, *here are *he remo*ely in<)rio)s e88ec*s o8 permanen* ni-h*work mani8es*e+ in *he la*er years o8 *he worker2s li8e 38 more imme+ia*e impor*ance *o *he a,era-e worker is *he +isarran-emen* o8 his social li8e, incl)+in- *he recrea*ional ac*i,i*ies o8 his leis)re ho)rs an+ *he or+inary associa*ions o8 normal 8amily rela*ions From an economic poin* o8 ,iew, ni-h*work is *o be +isco)ra-e+ beca)se o8 i*s a+,erse e88ec* )pon e88iciency an+ o)*p)* A moral ar-)men* a-ains* ni-h*work in *he case o8 women is *ha* *he ni-h* shi8* 8orces *he workers *o -o *o an+ 8rom *he 8ac*ory in +arkness %ecen* e(periences o8 in+)s*rial na*ions ha,e a++e+ m)ch *o *he e,i+ence a-ains* *he con*in)a*ion o8 ni-h*work, e(cep* in e(*raor+inary circ)ms*ances an+ )na,oi+able emer-encies /he imme+ia*e prohibi*ion o8 ni-h*work 8or all laborers is har+ly prac*icable@ i*s +iscon*in)ance in *he case o8 women employees is )n=)es*ionably +esirable 2/he ni-h* was ma+e 8or res* an+ sleep an+ no* 8or work2 is a common sayinamon- wa-e-earnin- people, an+ many o8 *hem +ream o8 an in+)s*rial or+er in which *here will be no ni-h* shi8* Disposition Pe*i*ion +enie+

SECTION 9 CONDITIONS OF EMPLOYMENT = WEEKLY REST PERIODS

Labor Law 1
6.0. RATIONALE
RATIONALE
MANILA ELECTRIC COMPANY V THE PUBLIC UTILITIES EMPLOYEES ASSOCIATION $9 P6IL< 409 &ERIA; O1#8(') 00, 194$
FACTS - /his is an appeal in*erpose+ by *he pe*i*ioner "anila $lec*ric Company a-ains* *he +ecision o8 *he Co)r* o8 In+)s*rial %ela*ions, which rea+s as 8ollows> Al*ho)-h *he prac*ice o8 *he company, accor+in- *o *he mani8es*a*ions o8 co)nsel 8or sai+ company, has been *o -ran* one +ay ,aca*ion wi*h pay *o e,ery workin-man who ha+ worke+ 8or se,en consec)*i,e +ays incl)+in- :)n+ays, *he Co)r* consi+ers <)s*i8ie+ *he opposi*ion presen*e+ by *he workin-men *o *he e88ec* *ha* *hey nee+ :)n+ays an+ holi+ays 8or *he obser,ance o8 *heir reli-ion an+ 8or res* /he Co)r*, *here8ore, or+ers *he respon+en* company *o pay H0 per cen* increase 8or o,er*ime work +one on or+inary +ays an+ H0 per cen* increase 8or work +one +)rin- :)n+ays an+ le-al holi+ays irrespec*i,e o8 *he n)mber o8 +ays *hey work +)rin- *he week - /he appellan* con*en+s *ha* *he sai+ +ecision is a-ains* :ec*ion A, Commonweal*h Ac* ;o AAA, which rea+s as 8ollows> ;o person, 8irm, or corpora*ion, b)siness es*ablishmen* or place or cen*er o8 labor shall compel an employee or laborer *o work +)rin- :)n+ays an+ le-al holi+ays, )nless he is pai+ an a++i*ional s)m o8 a* leas* 2HP o8 his re-)lar rem)nera*ion> Provided, however, /ha* *his prohibi*ion shall no* apply *o p)blic )*ili*ies per8ormin- some p)blic ser,ice s)ch as s)pplyin- -as, elec*rici*y, power, wa*er, or pro,i+in- means o8 *ranspor*a*ion or comm)nica*ion ISSUE 13; *he +ecision o8 *he Co)r* o8 In+)s*rial %ela*ions is erroneo)s an+ con*rary *o :ec*ion A, Commonweal*h Ac* ;o AAA HELD &$: - Commonweal*h Ac* ;o AAA pro,i+es *ha* p)blic )*ili*ies s)pplyin- elec*rici*y, -as, power, wa*er, or pro,i+in- means o8 *ranspor*a*ion or comm)nica*ion may compel *heir employees or laborers *o work +)rin- :)n+ays an+ le-al holi+ays wi*ho)* payin- *hem an a++i*ional compensa*ion o8 no* less *han 2H per cen* o8 *heir re-)lar rem)nera*ion on sai+ +ays -/he pro,isions o8 *he abo,e =)o*e+ sec*ion A, are plain an+ )nambi-)o)s an+ con,ey a clear an+ +e8ini*e meanin- :ai+ sec*ion 1 consis*s o8 *wo par*s> the first, which is *he enac*men* cla)se, prohibi*s a person, 8irm or corpora*ion, b)siness es*ablishmen*, or place or cen*er o8 labor 8rom compellin- an employee or laborer *o work +)rin- :)n+ays an+ le-al holi+ays, )nless *he 8ormer pays *he la**er an a++i*ional s)m o8 a* leas* *wen*y 8i,e per cen*)m o8 his re-)lar rem)nera*ion@ an+ *he second part, which is an e(cep*ion, e(emp*s p)blic )*ili*ies per8ormin- some p)blic ser,ice, s)ch as s)pplyin- -as, elec*rici*y, power, wa*er or pro,i+in- means o8 *ranspor*a*ion or comm)nica*ion, 8rom *he prohibi*ion es*ablishe+ in *he enac*men* cla)se - As *he appellan* is a p)blic )*ili*y *ha* s)pplies *he elec*rici*y an+ pro,i+es means o8 *ranspor*a*ion *o *he p)blic, i* is e,i+en* *ha* *he appellan* is e(emp* 8rom *he =)ali8ie+ prohibi*ion es*ablishe+ in *he enac*men* cla)se, an+ may compel i*s employees or laborers *o work +)rin- :)n+ays an+ le-al holi+ays wi*ho)* payin- *hem sai+ e(*ra compensa*ion

A2010

- 1A7 -

Disini

- /o cons*r)e sec*ion A, Commonweal*h Ac* ;o AAA, as e(emp*in- p)blic )*ili*ies, like *he appellan*, 8rom *he obli-a*ion *o pay *he a++i*ional rem)nera*ion re=)ire+ by sai+ sec*ion A sho)l+ *hey compel *heir employees or laborers *o work on :)n+ays an+ le-al holi+ays, wo)l+ no* make s)ch e(cep*ion a class le-isla*ion, ,iola*i,e o8 *he cons*i*)*ional -)aran*y o8 e=)al pro*ec*ion o8 *he laws - An+ i* is e,i+en* *ha* *he +i,ision ma+e by sec*ion A, o8 Commonweal*h Ac* ;o AAA, o8 persons, 8irms, an+ corpora*ions in*o *wo classes> one compose+ o8 p)blic )*ili*ies per8orminsome p)blic ser,ice s)ch as s)pplyin- -as, elec*rici*y, power, wa*er or pro,i+in- means o8 *ranspor*a*ion@ an+ ano*her compose+ o8 persons, 8irms, an+ corpora*ions which are no* p)blic )*ili*ies an+ +o no* per8orm sai+ p)blic ser,ice, is no* arbi*rary an+ is base+ in+i88erences which are apparen* an+ reasonable - /he +i,ision is no* arbi*rary, an+ *he basis *hereo8 is reasonable P)blic )*ili*ies e(emp*e+ 8rom *he prohibi*ion se* 8or*h in *he enac*men* cla)se o8 sec*ion A, Commonweal*h Ac* ;o AAA, are re=)ire+ *o per8orm a con*in)o)s ser,ice incl)+in:)n+ays an+ le-al holi+ays *o *he p)blic, since *he p)blic -oo+ so +eman+s, an+ are no* allowe+ *o collec* an e(*ra char-e 8or ser,ices per8orme+ on *hose +ays@ while *he o*hers are no* re=)ire+ *o +o so an+ are 8ree *o opera*e or no* *heir shops, b)siness, or in+)s*ries on :)n+ays an+ le-al holi+ays - I8 *hey opera*e an+ compel *heir laborers *o work on *hose +ays i* is b)* <)s* an+ na*)ral *ha* *hey sho)l+ pay an e(*ra compensa*ion *o *hem, beca)se i* is *o be pres)me+ *ha* *hey can make money or b)siness by opera*in- on *hose +ays e,en i8 *hey ha,e *o pay s)ch e(*ra rem)nera*ion I* wo)l+ be )n8air 8or *he law *o compel p)blic )*ili*ies like *he appellan* *o pay an a++i*ional or e(*ra compensa*ion *o laborers whom *hey ha,e *o compel *o work +)rin- :)n+ays an+ le-al holi+ays, in or+er *o per8orm a con*in)o)s ser,ice *o *he p)blic /o re=)ire p)blic )*ili*ies per8ormin- ser,ice *o +o so, wo)l+ be *an*amo)n* *o penali4e *hem 8or per8ormin- p)blic ser,ice +)rin- sai+ +ays in compliance wi*h *he re=)iremen* o8 *he law an+ p)blic in*eres* Disposition /he r)lin- o8 *he Co)r* o8 In+)s*rial %ela*ions was se* asi+e

SEPARATE OPINION PERFECTO &'())*+,- I* will be seen *ha* sec*ion A o8 Commonweal*h Ac* ;o AAA +i,i+es *he employers in*o *wo classes> 1 /hose no* en-a-e+ in p)blic )*ili*ies, an+ 2 *hose en-a-e+ in p)blic )*ili*ies - /he 8irs* class canno* compel *heir employees or laborers *o work on :)n+ays an+ holi+ays wi*ho)* -i,in- *hem an a++i*ional salary or ren)mera*ion e=)i,alen* *o no* less *han *wen*y-8i,e per centum o8 *he basic rem)nera*ion /here is no limi* as *o *he *ime or circ)ms*ances )n+er which *he a++i*ional compensa*ion is *o be pai+ $mployers en-a-e+ in p)blic )*ili*ies are e(cl)+e+ 8rom *he prohibi*ion - /his means simply *ha* employers en-a-e+ in p)blic )*ili*ies may or may no* pay *he a++i*ional compensa*ion or any a++i*ional compensa*ion 8or compellin- *heir laborers *o work on :)n+ays an+ holi+ays /he e(cep*ion sho)l+ no* be in*erpre*e+ as pro,i+in- *ha* employers en-a-e+ in p)blic )*ili*ies canno* be compelle+ *o pay a++i*ional compensa*ion *o workers re=)ire+ *o work on :)n+ays an+ holi+ays As *o *hem, sec*ion Ao8 Commonweal*h Ac* ;o AAA may be consi+ere+ as no* ha,in- been enac*e+ a* all $(cep*ion or e(emp*ion 8rom a ne-a*i,e or prohibi*ory le-al pro,ision is no* a posi*i,e or a88irma*i,e pro,ision comman+in- *he e(cep*e+ or e(emp*e+ person *o +o wha* is en<oine+ in *he -eneral pro,ision - /he ri-h* *o collec* an a++i*ional s)m o8 a* leas* *wen*y-8i,e per centum o8 *he basic rem)nera*ion is -)aran*ee+ *o all workers an+ employees no* en-a-e+ in p)blic )*ili*ies an+ *ha* ri-h* is en8orceable no* only in *he Co)r* o8 In+)s*rial %ela*ions b)* in any o*her compe*en* co)r* o8 <)s*ice - I* is a 8ac* *ha* :)n+ays an+ le-al holi+ays are se* asi+e by law as +ays o8 res* /he li8e, e(is*ence, an+ happiness o8 a person

Labor Law 1
+o no* +epen+ only on *he sa*is8ac*ion o8 his physical nee+s /here are moral, in*ellec*)al an+ spiri*)al nee+s as impera*i,e as *he physical ones - 3r+inarily, :)n+ays an+ le-al holi+ays are +e+ica*e+ *o rea+in- an+ ins*r)c*ion so as *o 8ill *he min+ wi*h c)l*)re or some sor* o8 a+,ancemen* 3n *hose +ays *he laborer en<oys lon-er ho)rs in *he company o8 his 8amily /ha* -i,es him an oppor*)ni*y *o sa*is8y his moral nee+s D)rin- :)n+ays an+ holi+ays more *ime is +e+ica*e+ *o worship an+ o*her reli-io)s ser,ices /ha* -i,es a laborer an oppor*)ni*y *o sa*is8y his spiri*)al nee+s /he +epri,a*ion o8 *ha* oppor*)ni*y *o sa*is8y men*al, moral, an+ spiri*)al nee+s sho)l+ no* be i-nore+, an+ sho)l+ be properly compensa*e+ Pe*i*ion sho)l+ be +ismisse+

A2010

- 1AI -

Disini

6.06 CO>ERA2E 6.05 SCHEDULIN2 OF REST DAY 6.04 COMPULSORY 3OR7 AND COMPENSATION SECTION : CONDITIONS EMPLOYMENT = 2OLIDAYS 7.0. CO>ERA2E
COVERA1E AND PURPOSE
MANTRADE"FMC DIVISION EMPLOYEES AND WORKERS UNION V BACUNGAN SAN MIGUEL V CA (ESPA%OL) 0$5 SCRA 011 =02> :APUNAN; 5a7 a)y 00, 2002
NATURE Pe*i*ion 8or a re,iew o8 *he +ecision o8 *he Co)r* o8 Appeals FACTS - .7 O& !0e# .;;6@ *he Depar*men* o8 Labor an+ $mploymen* !D3L$', Ili-an Dis*ric* 388ice, con+)c*e+ a ro)*ine inspec*ion in *he premises o8 :an "i-)el Corpora*ion !:"C' in :*a Filomena, Ili-an Ci*y In *he co)rse o8 *he inspec*ion, i* was +isco,ere+ *ha* *here was )n+erpaymen* o8 re-)lar ")slim holi+ay pay *o i*s employees - :"C 8aile+ *o s)bmi* proo8 *ha* i* was payin- re-)lar ")slim holi+ay pay *o i*s employees Alan " "acaraya, Direc*or IK o8 D3L$ Ili-an Dis*ric* 388ice iss)e+ a compliance or+er +irec*in:"C *o consi+er ")slim holi+ays as re-)lar holi+ays an+ *o pay bo*h i*s ")slim an+ non-")slim employees holi+ay pay wi*hin *hir*y !30' +ays 8rom *he receip* o8 *he or+er ISSUES 1 13; CA erre+ in -ran*in- non-")slim employees ")slim holi+ay pay 2 13; "acaraya an+ $spaZol ha,e <)ris+ic*ion in iss)incompliance or+ers o,er sai+ labor s*an+ar+ case HELD .. ;3

OF

Ratio 1a-es an+ o*her emol)men*s -ran*e+ by law *o *he workin- man are +e*ermine+ on *he basis o8 *he cri*eria lai+ +own by laws an+ cer*ainly no* on *he basis o8 *he workerEs 8ai*h or reli-ion Reasoning - ")slim holi+ays are pro,i+e+ )n+er Ar*icles 179 an+ 1I0, /i*le I, #ook K, o8 Presi+en*ial Decree ;o 1063, o*herwise known as *he Co+e o8 ")slim Personal Laws /he a8oremen*ione+ pro,isions sho)l+ be rea+ in con<)nc*ion wi*h Ar* 9A o8 *he Labor Co+e> A# . ;4. Ri:) ! )!lida, "a,@ !a' $,ery worker shall be pai+ his re-)lar +aily wa-e +)rinre-)lar holi+ays, e(cep* in re*ail an+ ser,ice es*ablishmen*s re-)larly employin- less *han *en !10' workers@ !b' /he employer may re=)ire an employee *o work on any holi+ay b)* s)ch employee shall be pai+ a compensa*ion e=)i,alen* *o *wice his re-)lar ra*e@ ( ( ( - /here sho)l+ be no +is*inc*ion be*ween ")slims an+ non")slims as re-ar+s paymen* o8 bene8i*s 8or ")slim holi+ays Pe*i*ioner asser*s *ha* Ar*icle 3!3' o8 Presi+en*ial Decree ;o 1063 pro,i+es *ha* B!*'he pro,isions o8 *his Co+e shall be applicable only *o ")slims ( ( ( D Gowe,er, sai+ ar*icle also +eclares *ha* B( ( ( no*hin- herein shall be cons*r)e+ *o opera*e *o *he pre<)+ice o8 a non-")slim D .;;; Ha%d0!!= !% 3!#=e#(L S a ' !#, /e%efi (@ BConsi+erin- *ha* all pri,a*e corpora*ions, o88ices, a-encies, an+ en*i*ies or es*ablishmen*s opera*in- wi*hin *he +esi-na*e+ ")slim pro,inces an+ ci*ies are re=)ire+ *o obser,e ")slim holi+ays, bo*h ")slim an+ Chris*ians workin- wi*hin *he ")slim areas may no* repor* 8or work on *he +ays +esi-na*e+ by law as ")slim holi+ays J - As re-ar+s *he alle-a*ion *ha* *he iss)e on ")slim holi+ay pay was alrea+y resol,e+ in (apoleon >! +ernan vs! San iguel Corporation =eer :ivision and 2eopoldo Saldarriaga, *he Co)r* no*es *ha* *he case was primarily 8or ille-al +ismissal an+ *he claim 8or bene8i*s was only inci+en*al *o *he main case 2 &$: - %e-ional Direc*or "acaraya ac*e+ as *he +)ly a)*hori4e+ represen*a*i,e o8 *he :ecre*ary o8 Labor an+ $mploymen* an+ i* was wi*hin his power *o iss)e *he compliance or+er *o :"C Reasoning 1 A# i&le .6-. >i(i !#ial a%d e%f!#&e+e% "!8e#. !b' ;o*wi*hs*an+in- *he pro,isions o8 Ar*icle 129 an+ 21I o8 *his Co+e *o *he con*rary, an+ in cases where *he rela*ionship o8 employer-employee s*ill e(is*s, *he :ecre*ary o8 Labor an+ $mploymen* or his +)ly a)*hori4e+ represen*a*i,es shall ha,e *he power *o iss)e compliance or+ers *o -i,e e88ec* *o *he labor s*an+ar+s pro,isions o8 *his Co+e an+ o*her labor le-isla*ion base+ on *he 8in+in-s o8 labor employmen* an+ en8orcemen* o88icers or in+)s*rial sa8e*y en-ineers ma+e in *he co)rse o8 *he inspec*ion - Pe*i*ioner merely con*en+s *ha* i*s non-")slim employees are no* en*i*le+ *o ")slim holi+ay pay /he iss)e co)l+ be resol,e+ e,en wi*ho)* +oc)men*ary proo8s In any case, *here was no in+ica*ion *ha* %e-ional Direc*or "acaraya 8aile+ *o consi+er any +oc)men*ary proo8 presen*e+ by :"C in *he co)rse o8 *he inspec*ion Disposition /he pe*i*ion is +ismisse+

ASIAN TRANSMISSION CORP V CA (BISIG NG ASIAN TRANSMISSION LABOR UNION) [PAGE 45]

7.06 HOLIDAYS

Labor Law 1
7.05 HOLDAY PAY
FACULTY PRIVATE SC2OOL
$OSE RIZAL COLLEGE V NLRC 156 SCRA 2$ PARAS; 198$
NATURE 1 Pe*i*ion 8or cer*iorari wi*h preliminary in<)nc*ion *o re,iew *he +ecision o8 *he ;a*ional Labor %ela*ions Commission FACTS 1 Pe*i*ioner is a non-s*ock, non-pro8i* e+)ca*ional ins*i*)*ion +)ly or-ani4e+ an+ e(is*in- )n+er *he laws o8 *he Philippines I* has *hree -ro)ps o8 employees ca*e-ori4e+ as 8ollows> !a' personnel on mon*hly basis, who recei,e *heir mon*hly salary )ni8ormly *hro)-ho)* *he year, irrespec*i,e o8 *he ac*)al n)mber o8 workin- +ays in a mon*h wi*ho)* +e+)c*ion 8or holi+ays@ !b' personnel on +aily basis who are pai+ on ac*)al +ays worke+ an+ *hey recei,e )nworke+ holi+ay pay an+ !c' colle-ia*e 8ac)l*y who are pai+ on *he basis o8 s*)+en* con*rac* ho)r #e8ore *he s*ar* o8 *he semes*er *hey si-n con*rac*s wi*h *he colle-e )n+er*akin- *o mee* *heir classes as per sche+)le - .nable *o recei,e *heir correspon+in- holi+ay pay, as claime+, 8rom 19IH *o 19II, pri,a*e respon+en* ;a*ional Alliance o8 /eachers an+ 388ice 1orkers !;A/31' in behal8 o8 *he 8ac)l*y an+ personnel o8 5ose %i4al Colle-e 8ile+ wi*h *he "inis*ry o8 Labor a complain* a-ains* *he colle-e 8or sai+ alle-e+ nonpaymen* o8 holi+ay pay 1 A8*er *he par*ies ha+ s)bmi**e+ *heir respec*i,e posi*ion papers, *he Labor Arbi*er ren+ere+ a +ecision on Febr)ary H, 19I9> 1 /he 8ac)l*y an+ personnel o8 *he respon+en* 5ose %i4al Colle-e who are pai+ *heir salary by *he mon*h )ni8ormly in a school year, irrespec*i,e o8 *he n)mber o8 workin- +ays in a mon*h, wi*ho)* +e+)c*ion 8or holi+ays, are pres)me+ *o be alrea+y pai+ *he 10 pai+ le-al holi+ays an+ are no lon-er en*i*le+ *o separa*e paymen* 8or *he sai+ re-)lar holi+ays@ 2 /he personnel o8 *he respon+en* 5ose %i4al Colle-e who are pai+ *heir wa-es +aily are en*i*le+ *o be pai+ *he 10 )nworke+ re-)lar holi+ays accor+in- *o *he per*inen* pro,isions o8 *he %)les an+ %e-)la*ions Implemen*in- *he Labor Co+e@ 3 Colle-ia*e 8ac)l*y o8 *he respon+en* 5ose %i4al Colle-e who by con*rac* are pai+ compensa*ion per s*)+en* con*rac* ho)r are no* en*i*le+ *o )nworke+ re-)lar holi+ay pay consi+erin*ha* *hese re-)lar holi+ays ha,e been e(cl)+e+ in *he pro-rammin- o8 *he s*)+en* con*ac* ho)rs - 3n appeal, respon+en* ;a*ional Labor %ela*ions Commission in a +ecision prom)l-a*e+ on 5)ne 2, 1962, mo+i8ie+ *he +ecision appeale+ 8rom, in *he sense *ha* *eachin- personnel pai+ by *he ho)r are +eclare+ *o be en*i*le+ *o holi+ay pay ISSUE 13; *he school 8ac)l*y who accor+in- *o *heir con*rac*s are pai+ per lec*)re ho)r are en*i*le+ *o )nworke+ holi+ay pay HELD ;3 !8or re-)lar holi+ays'?&$:!8or special holi+ays' - Labor Arbi*er s)s*ains *he ,iew *ha* sai+ ins*r)c*ors an+ pro8essors are no* en*i*le+ *o holi+ay pay, his +ecision was mo+i8ie+ by *he ;a*ional Labor %ela*ions Commission hol+in*he con*rary Pe*i*ioner main*ains *he posi*ion amon- o*hers, *ha* i* is no* co,ere+ by #ook K o8 *he Labor Co+e on Labor

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%ela*ions consi+erin- *ha* i* is a non-pro8i* ins*i*)*ion an+ *ha* i*s ho)rly pai+ 8ac)l*y members are pai+ on a 9con*rac*9 basis beca)se *hey are re=)ire+ *o hol+ classes 8or a par*ic)lar n)mber o8 ho)rs In *he pro-rammin- o8 *hese s*)+en* con*rac* ho)rs, le-al holi+ays are e(cl)+e+ an+ labelle+ in *he sche+)le as 9no class +ay 9 3n *he o*her han+, i8 a re-)lar week +ay is +eclare+ a holi+ay, *he school calen+ar is e(*en+e+ *o compensa*e 8or *ha* +ay /h)s pe*i*ioner ar-)es *ha* *he a+,en* o8 any o8 *he le-al holi+ays wi*hin *he semes*er will no* a88ec* *he 8ac)l*y2s salary beca)se *his +ay is no* incl)+e+ in *heir sche+)le while *he calen+ar is e(*en+e+ *o compensa*e 8or special holi+ays /h)s *he pro-ramme+ n)mber o8 lec*)re ho)rs is no* +iminishe+ - /he :olici*or 0eneral on *he o*her han+, ar-)es *ha* )n+er Ar*icle 9A o8 *he Labor Co+e, holi+ay pay applies *o all employees e(cep* *hose in re*ail an+ ser,ice es*ablishmen*s /o +epri,e *here8ore employees pai+ a* an ho)rly ra*e o8 )nworke+ holi+ay pay is con*rary *o *he policy consi+era*ions )n+erlyins)ch presi+en*ial enac*men*, apar* 8rom *he cons*i*)*ional man+a*e *o -ran* -rea*er ri-h*s *o labor An+ )n+er Ar*icle 9A o8 *he Labor Co+e, *he pe*i*ioner, al*ho)-h a nonpro8i* ins*i*)*ion is )n+er obli-a*ion *o -i,e pay e,en on )nworke+ re-)lar holi+ays *o ho)rly pai+ 8ac)l*y members s)b<ec* *o *he *erms an+ con+i*ions pro,i+e+ 8or *herein - /he Co)r* hel+ *ha* *he a8oremen*ione+ implemen*in- r)le is no* <)s*i8ie+ by *he pro,isions o8 *he law which a8*er all is silen* wi*h respec* *o 8ac)l*y members pai+ by *he ho)r who beca)se o8 *heir *eachin- con*rac*s are obli-e+ *o work an+ consen* *o be pai+ only 8or work ac*)ally +one - 3n *he o*her han+, bo*h *he law an+ *he Implemen*in- %)les -o,ernin- holi+ay pay are silen* as *o paymen* on :pecial P)blic Goli+ays - I* is rea+ily apparen* *ha* *he +eclare+ p)rpose o8 *he holi+ay pay which is *he pre,en*ion o8 +imin)*ion o8 *he mon*hly income o8 *he employees on acco)n* o8 work in*err)p*ions is +e8ea*e+ when a re-)lar class +ay is cancelle+ on acco)n* o8 a special p)blic holi+ay an+ class ho)rs are hel+ on ano*her workin- +ay *o make )p 8or *ime los* in *he school calen+ar 3*herwise s*a*e+, *he 8ac)l*y member, al*ho)-h 8orce+ *o *ake a res*, +oes no* earn wha* he sho)l+ earn on *ha* +ay #e i* no*e+ *ha* when a special p)blic holi+ay is +eclare+, *he 8ac)l*y member pai+ by *he ho)r is +epri,e+ o8 e(pec*e+ income, an+ i* +oes no* ma**er *ha* *he school calen+ar is e(*en+e+ in ,iew o8 *he +ays or ho)rs los*, 8or *heir income *ha* co)l+ be earne+ 8rom o*her so)rces is los* +)rin- *he e(*en+e+ +ays :imilarly, when classes are calle+ o88 or shor*ene+ on acco)n* o8 *yphoons, 8loo+s, rallies, an+ *he like, *hese 8ac)l*y members m)s* likewise be pai+, whe*her or no* e(*ensions are or+ere+ Disposition Decisions se* asi+e ;ew +ecision ren+ere+> !a' e(emp*in- pe*i*ioner 8rom payin- ho)rly pai+ 8ac)l*y members *heir pay 8or re-)lar holi+ays, whe*her *he same be +)rin- *he re-)lar semes*ers o8 *he school year or +)rinsemes*ral, Chris*mas, or Goly 1eek ,aca*ions@ !b' b)* or+erin- pe*i*ioner *o pay sai+ 8ac)l*y members *heir re-)lar ho)rly ra*e on +ays +eclare+ as special holi+ays or 8or some reason classes are calle+ o88 or shor*ene+ 8or *he ho)rs *hey are s)ppose+ *o ha,e *a)-h*, whe*her e(*ensions o8 class +ays be or+ere+ or no*@ in case o8 e(*ensions sai+ 8ac)l*y members shall likewise be pai+ *heir ho)rly ra*es sho)l+ *hey *each +)rin- sai+ e(*ensions

DIVISOR AS FACTOR
UNION OF FILIPRO EMPLOYEES V VIVAR [PAGE 122] TRANSASIA PHILS EMPLOYER ASSN V NLRC (TRANS ASIA, DE CASTRO) 020 SCRA 54$ :APUNAN; D'1'3(') 10, 1999

Labor Law 1
NATURE Pe*i*ion 8or cer*iorari FACTS 1 3n I 5)ly 1966, /rans-Asia Philippines $mployees Associa*ion !/AP$A', en*ere+ in*o a Collec*i,e #ar-ainin- A-reemen* wi*h *heir employer /he C#A, pro,i+e+ 8or, *he paymen* o8 holi+ay pay wi*h a s*ip)la*ion *ha* i8 an employee is permi**e+ *o work on a le-al holi+ay, *he sai+ employee will recei,e a salary e=)i,alen* *o 200P o8 *he re-)lar +aily wa-e pl)s a 70P premi)m pay - Despi*e *he concl)sion o8 *he C#A, an iss)e was s*ill le8* )nresol,e+ wi*h re-ar+ *o *he claim o8 /AP$A 8or paymen* o8 holi+ay pay co,erin- *he perio+ 8rom 5an)ary o8 196H )p *o December o8 196I - /he par*ies )n+erwen* pre,en*i,e me+ia*ion mee*in-s wi*h a represen*a*i,e 8rom *he ;a*ional "e+ia*ion an+ Concilia*ion #oar+ 1 /he par*ies were no* able *o arri,e a* an amicable se**lemen* 1 /AP$A 8ile+ a complain* be8ore *he labor arbi*er 8or *he paymen* o8 *heir holi+ay pay in arrears 1 Pe*i*ioners amen+e+ *heir complain* *o incl)+e *he paymen* o8 holi+ay pay 8or *he +)ra*ion o8 *he recen*ly concl)+e+ C#A !8rom 1966 *o 1991', )n8air labor prac*ice, +ama-es an+ a**orney2s 8ees 1 Petitione#s +onten% G *heir claim 8or *he holi+ay pay in arrears is base+ on *he nonincl)sion o8 *he same in *heir mon*hly pay Firs*, pe*i*ioners presen*e+ /rans-Asia2s $mployees2 "an)al which re=)ires, *ha* *he employee sho)l+ ha,e worke+ or was on a)*hori4e+ lea,e wi*h pay on *he +ay imme+ia*ely prece+in- *he le-al holi+ay /hey ar-)e+ *ha* i8 *he in*en*ion o8 /rans-Asia was no* *o pay holi+ay pay in a++i*ion *o *he employee2s mon*hly pay, *hen *here wo)l+ be no nee+ *o impose or speci8y *he pre-con+i*ion 8or *he paymen* :econ+, pe*i*ioners pro88ere+ as e,i+ence *heir appoin*men* papers which +o no* con*ain any s*ip)la*ion on *he incl)sion o8 holi+ay pay in *heir mon*hly salary /hir+, pe*i*ioners no*e+ *he incl)sion o8 a pro,ision in *he C#A 8or *he paymen* o8 an amo)n* e=)i,alen* *o 200P o8 *he re-)lar +aily wa-e pl)s 70P premi)m pay *o employees who are permi**e+ *o work on a re-)lar holi+ay Finally, pe*i*ioners ci*e+ *he c)rren* C#A pro,ision which obli-a*es /rans-Asia *o -i,e holi+ay pay W /rans-Asia is -)il*y o8 0ad fai ) in ne-o*ia*in- an+ e(ec)*in*he c)rren* C#A since, a8*er i* reco-ni4e+ *he ri-h* o8 *he employees *o recei,e holi+ay pay, /rans-Asia alle-e+ly re8)se+ *o honor *he C#A pro,ision on *he same 1 Respon%ents +)ai( G /ans-Asia re8)*e+ *he alle-a*ions G /rans-Asia asser*e+ *ha* *he abo,e circ)ms*ances are no* in+ica*i,e o8 i*s non-paymen* o8 holi+ay pay since i* has always honore+ *he labor law pro,isions on holi+ay pay by incorpora*in- *he same in *he paymen* o8 *he mon*hly salaries o8 i*s employees In s)ppor* o8 *his claim, /rans-Asia poin*e+ o)* *ha* i* has lon- been *he s*an+in- prac*ice o8 *he company *o )se *he +i,isor o8 92679 +ays in comp)*in- 8or i*s employees2 o,er*ime pay an+ +aily ra*e +e+)c*ions 8or absences G /rans-Asia 8)r*her clari8ie+ *ha* *he 92679 +ays +i,isor alrea+y *akes in*o acco)n* *he *en !10' re-)lar holi+ays in a year since i* only s)b*rac*s 8rom *he 37H calen+ar +ays *he )nworke+ an+ )npai+ H2 :)n+ays an+ 27 :a*)r+ays G /rans-Asia claime+ *ha* i8 *he *en !10' re-)lar holi+ays were no* incl)+e+ in *he comp)*a*ion o8 *heir employee2s mon*hly salary, *he +i,isor which *hey wo)l+ ha,e )se+ wo)l+ only be 2II G F)r*hermore, /rans-Asia e(plaine+ *ha* *he 92679 +ays +i,isor is base+ on %ep)blic Ac* ;o 77A0 wherein *he +i,isor o8 272 +ays is )se+ in comp)*in- 8or *he mon*hly ra*e o8 workers who +o no* work an+ are no* consi+ere+ pai+ on :a*)r+ays an+ :)n+ays or res* +ays $ 3n *he secon+ con*en*ion o8 *he pe*i*ioners, /rans-Asia e(plaine+ *ha* *his holi+ay pay ra*e was incl)+e+ in *he C#A in

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or+er *o comply wi*h :ec*ion A, %)le IK, #ook III o8 *he 3mnib)s %)les Implemen*in- *he Labor Co+e> :ec A Compensa*ion 8or holi+ay work - Any employee who is permi**e+ or s)88ere+ *o work on any re-)lar holi+ay, no* e(cee+in- ei-h* !6' ho)rs, shall be pai+ a* leas* *wo h)n+re+ percen* !200P' o8 his re-)lar +aily wa-e I8 *he holi+ay 8alls on *he sche+)le+ res* +ay o8 *he employee, he shall be en*i*le+ *o an a++i*ional premi)m pay o8 a* leas* 30P o8 his re-)lar holi+ay ra*e o8 200P base+ on his re-)lar wa-e ra*e - 3n *he con*en*ion *ha* /rans-Asia2s ac=)iescence *o *he incl)sion o8 a holi+ay pay pro,ision in *he C#A is an a+mission o8 non-paymen* o8 *he same in *he pas*, /rans-Asia rei*era*e+ *ha* i* is simply a reco-ni*ion o8 *he man+a*e o8 *he Labor Co+e *ha* employees are en*i*le+ *o holi+ay pay - 1i*h re-ar+ *o *he acc)sa*ion o8 )n8air labor prac*ice, /ransAsia e(plaine+ *ha* wha* pe*i*ioners wo)l+ like *he company *o +o is *o -i,e +o)ble holi+ay pay since, as pre,io)sly s*a*e+, *he company has alrea+y incl)+e+ i*s employees mon*hly salary an+, ye*, pe*i*ioners wan* i* *o pay a secon+ se* o8 holi+ay pay - 3n 13 Febr)ary 1969, *he labor arbi*er ren+ere+ a +ecision +ismissin- *he complain* - Pe*i*ioners appeale+ *o *he ;a*ional Labor %ela*ions Commission In i*s %esol)*ion, +a*e+ 23 ;o,ember 1993, *he ;L%C +ismisse+ *he appeal an+ a88irme+ *he +ecision o8 *he labor arbi*er - Pe*i*ioners2 mo*ion 8or reconsi+era*ion was, likewise, +enie+ by *he ;L%C in i*s %esol)*ion, +a*e+ 13 :ep*ember 199A ISSUES 1 13; ;L%C erre+ in )phol+in- *he labor arbi*erEs +ecision 2 13; ;L%C ,iola*e+ *he cons*i*)*ional an+ le-al man+a*e *o resol,e all +o)b*s in social le-isla*ion in 8a,or o8 labor HELD 1 ;3 - /rans-Asia2s incl)sion o8 holi+ay pay in pe*i*ioner2s mon*hly salary is clearly es*ablishe+ by i*s consis*en* )se o8 *he +i,isor o8 92679 +ays in *he comp)*a*ion o8 i*s employees2 bene8i*s an+ +e+)c*ions /he )se by /rans-Asia o8 *he 92679 +ays +i,isor was ne,er +isp)*e+ by pe*i*ioners - ;e,er*heless, pe*i*ioners2 ca)se is no* en*irely los* /he Co)r* no*es *ha* *here is a nee+ *o a+<)s* *he +i,isor )se+ by /ransAsia *o 26I +ays, ins*ea+ o8 only 267 +ays, in or+er *o properly acco)n* 8or *he en*ire*y o8 re-)lar holi+ays an+ special +ays in a year as prescribe+ by $(ec)*i,e 3r+er ;o 203 in rela*ion *o :ec*ion 7 o8 *he %)les Implemen*in- %ep)blic Ac* 7I2I :ec*ion 1 o8 $(ec)*i,e 3r+er ;o 203 pro,i+es> :$C/I3; 1 .nless o*herwise mo+i8ie+ by law, or+er or proclama*ion, *he 8ollowin- re-)lar holi+ays an+ special +ays shall be obser,e+ in *he co)n*ry> A %e-)lar Goli+ays ;ew &ear2s Day "a)n+y /h)rs+ay 0oo+ Fri+ay Araw nKa-i*in-an !#a*aan U Corre-i+or Day' Labor Day In+epen+ence Day ;a*ional Geroes Day #oni8acio Day Chris*mas Day %i4al Day -5an)ary 1 -"o,able Da*e -"o,able Da*e -April 9 -"ay 1 -5)ne 12 -Las* :)n+ay o8 A)-)s* -;o,ember 30 -December 2H -December 30 # ;a*ionwi+e :pecial Days All :ain*s Day Las* Day o8 *he &ear -;o,ember 1 -December 31 - 3n *he o*her han+, :ec*ion 7 o8 *he Implemen*in- %)les an+ %e-)la*ions o8 %ep)blic Ac* ;o 7I2I pro,i+es *ha* *he *o*al n)mber o8 workin- +ays is 272 +ays !see ori-inal 8or *he 8orm)la an+ comp)*a*ion' - In *he presen* case, since *he employees o8 /rans-Asia are re=)ire+ *o work hal8-+ay on :a*)r+ays, 27 +ays sho)l+ be a++e+ *o *he +i,isor o8 272 +ays, *h)s, res)l*in- *o 266 +ays Gowe,er, +)e *o *he 8ac* *ha* *he res* +ays o8 pe*i*ioners 8all on a :)n+ay, *he n)mber o8 )nworke+ b)* pai+ le-al holi+ays sho)l+ be re+)ce+ *o nine !9', ins*ea+ o8 *en !10', since one le-al holi+ay )n+er $ 3 ;o 203 always 8alls on *he las* :)n+ay o8 A)-)s*, ;a*ional Geroes Day /h)s, *he +i,isor *ha* sho)l+ be )se+ in *he presen* case sho)l+ be 26I +ays

Labor Law 1
- Gowe,er, *he Co)r* no*es *ha* i8 *he +i,isor is increase+ *o 26I +ays, *he res)l*in- +aily ra*e 8or *he p)rposes o8 o,er*ime pay, holi+ay pay an+ con,ersions o8 acc)m)la*e+ lea,es wo)l+ be +iminishe+ - Clearly, *his m)++le+ si*)a*ion wo)l+ be ,iola*i,e o8 *he proscrip*ion on *he non-+imin)*ion o8 bene8i*s )n+er :ec*ion 100 o8 *he Labor Co+e 3n *he o*her han+, *he )se o8 *he +i,isor o8 26I +ays wo)l+ be *o *he a+,an*a-e o8 pe*i*ioners i8 i* is )se+ 8or p)rposes o8 comp)*in- 8or +e+)c*ions +)e *o *he employee2s absences In ,iew o8 *his si*)a*ion, *he Co)r* r)les *ha* *he a+<)s*e+ +i,isor o8 26I +ays sho)l+ only be )se+ by /rans-Asia 8or comp)*a*ions which wo)l+ be a+,an*a-eo)s *o pe*i*ioners an+ no* 8or comp)*a*ions which wo)l+ +iminish *he e(is*in- bene8i*s o8 *he employees 2 ;3 - As pre,io)sly s*a*e+, *he +ecision o8 *he labor arbi*er an+ *he resol)*ions o8 *he ;L%C were base+ on s)bs*an*ial e,i+ence an+, as s)ch, no ambi-)i*y or +o)b* e(is*s which co)l+ be resol,e+ in pe*i*ioner2s 8a,or Disposition A88irme+ wi*h mo+i8ica*ion !on *he +i,isor *ha* /rans- Asia sho)l+ )se in comp)*in- *he salaries o8 i*s employees incl)+in- holi+ay pay'

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COMPUTATION
AGGA V NLRC (SUPPLY OILFIELD SERVICES INC, UNDERSEAS DRILLING INC) 298 SCRA 285 PUNO; N89'3(') 16, 1998
NATURE Pe*i*ion 8or Cer*iorari FACTS 1 Pri,a*e respon+en* :)pply 3il8iel+ :er,ices, Inc hire+ pe*i*ioners *o work on boar+ a +rillship owne+ an+ opera*e+ by pri,a*e respon+en* .n+erseas Drillin-, Inc - /he employmen* con*rac*s ran 8or one year wi*h pe*i*ioners en<oyin- *wo mon*hs o88 wi*h pay 8or e,ery *wo mon*hs2 +)*y /he con*rac*s also pro,i+e+ *ha* 8or ser,ice o8 12 ho)rs a +ay, I +ays a week in a *wo-shi8* 2A-ho)r opera*ion, pe*i*ioners wo)l+ recei,e a 8i(e+ mon*hly compensa*ion co,erin- 9basic ra*e, allowances, pri,ile-es, *ra,el allowances an+ bene8i*s -ran*e+ by law +)rin- an+ a8*er employmen* wi*h *he company 9 1 Petitione#s +)ai( M pri,a*e respon+en*s 8aile+ *o pay *hem o,er*ime pay, holi+ay pay, res* +ay pay, 13*h mon*h pay an+ ni-h* shi8* +i88eren*ial /hey likewise alle-e+ *ha* pri,a*e respon+en*s +i+ no* comply wi*h *he man+a*ory ins)rance re=)iremen* /hey 8)r*her a,erre+ *ha* while pri,a*e respon+en*s ma+e *hem )se passpor*s 8or o,erseas con*rac* workers, *hey were also ins*r)c*e+ *o )se seaman2s books )pon reachin- por* 8or *rans8er *o, an+ while aboar+, *he oilri- Pe*i*ioners opine+ *ha* *his prac*ice en*i*le+ *hem *o *he bene8i*s -ran*e+ by law *o bo*h lan+-base+ workers an+ seamen 1 Respon%ents +onten% M +enie+ liabili*y In a++i*ion, *hey alle-e+ *ha* pe*i*ioners were ins)re+ wi*h #l)e Cross !Asia-Paci8ic' Ins)rance, L*+ a-ains* +ea*h an+ permanen* +isabili*y Las*ly, pri,a*e respon+en*s con*en+e+ *ha* pe*i*ioners, as o88shore oilri--ers, ha+ no*hin*o +o wi*h mannin- a ,essel or sea na,i-a*ion Gence, pe*i*ioners were merely lan+-base+ workers, no* seamen - 3n 5)ly 2, 1992, *he P3$A +ismisse+ pe*i*ioners2 complain* 8or lack o8 meri* - Pe*i*ioners appeale+ *o *he ;a*ional Labor %ela*ions Commission - .pon *he o*her han+, pri,a*e respon+en*s in8orme+ *he ;L%C *ha* *he P3$A ha+ alrea+y +ismisse+ *he claims 8or )n+erpaymen* o8 labor bene8i*s an+ lack o8 ins)rance co,era-e in *he consoli+a*e+ cases, an+ *ha* *he +ismissal was a88irme+ on appeal /he +ecision has become 8inal

- 3n ;o,ember 2I, 199H, *he respon+en* ;L%C prom)l-a*e+ *he Decision assaile+ herein, +ismissin- pe*i*ioners2 appeal - In an appeal +a*e+ Febr)ary 27, 1993, *he complainan*s =)es*ione+ *he a8oresai+ +ecision - 3n 5an)ary 1I, 1997, pe*i*ioners 8ile+ a mo*ion 8or reconsi+era*ion In an 3r+er A +a*e+ 5an)ary 30, 1997, *he respon+en* ;L%C +enie+ pe*i*ioners2 mo*ion ISSUES 1 13; respon+en* ;L%C ac*e+ wi*ho)* or in e(cess o8 <)ris+ic*ion or wi*h -ra,e ab)se o8 +iscre*ion amo)n*in- *o lack or e(cess <)ris+ic*ion in no* +eclarin- *ha* *he l)mps)m mo+e o8 paymen* o8 pe*i*ionersE mon*hly salaries by pri,a*e respon+en*s is ille-al 2 13; respon+en* ;L%C erre+ in no* or+erin- pri,a*e respon+en*s, <oin*ly an+ se,erally, *o pay *he a+mi**e+ )n+erpaymen* as shown by pri,a*e respon+en*sE comp)*a*ion 3 13; respon+en* ;L%C erre+ in no* or+erin- *he P3$A *o comply wi*h i*s man+a*e+ +)*y *o se* )p s*an+ar+ employmen* con*rac* an+ -)i+in- ra*es 8or oilri- workers A 13; respon+en* ;L%C erre+ in no* +eclarin- *ha* pri,a*e respon+en*s 8aile+ *o comply wi*h *he le-al re=)iremen* o8 man+a*ory personal ins)rance H 13; respon+en* ;L%C erre+ in no* penali4in- pri,a*e respon+en* 7 13; respon+en* ;L%C erre+ in no* awar+in- +ama-es an+ a**orneyEs 8ees *o pe*i*ioners HELD 1 ;3 - Pe*i*ioners con*en+ *ha* *he l)mps)m mo+e o8 paymen* o8 salaries is ille-al, ci*in- Ar*icles H an+ 7 o8 *he ;ew Ci,il Co+e, Ar*icles 67, 6I, 90, 93 an+ 9A o8 PD AA2 an+ #ook K, %)le II, :ec*ion 2!a' o8 *he 1991 P3$A %)les - As correc*ly obser,e+ by *he respon+en*s, none o8 *he a8oremen*ione+ laws an+ r)les prohibi* *he s)b<ec* paymen* scheme /he ci*e+ ar*icles o8 *he ;ew Ci,il Co+e merely pro,i+e *ha* a-reemen*s in ,iola*ion o8 law or p)blic policy canno* be en*ere+ in*o an+ ha,e le-al e88ec* /he ci*e+ pro,isions o8 PD AA2 simply +eclare *ha* ni-h* shi8* +i88eren*ial an+ a++i*ional rem)nera*ion 8or o,er*ime, res* +ay, :)n+ay an+ holi+ay work shall be comp)*e+ on *he basis o8 *he employee2s re-)lar wa-e In like 8ashion, *he 1991 P3$A %)les merely re=)ire employers *o -)aran*ee paymen* o8 wa-es an+ o,er*ime pay /h)s, pe*i*ioners2 s*ance is bere8* o8 any le-al s)ppor* 2 ;3 - Pe*i*ioners alle-e *ha* *heir 8i(e+ mon*hly salaries represen*e+ only *heir basic salaries an+ +i+ no* incl)+e o,er*ime pay, holi+ay pay, 13*h mon*h pay an+ ni-h* shi8* +i88eren*ial - Decisions an+?or awar+s o8 *he A+minis*ra*ion shall be 8inal an+ e(ec)*ory )nless appeale+ *o *he ;a*ional Labor %ela*ions Commission !;L%C' by any or bo*h par*ies, i* *hen 8ollows *ha* , *o *he e(*en* *ha* *he P3$A has concl)+e+ *ha* *here is 2no case o8 )n+erpaymen* a* bar,2 *he same has *o be bin+in-ly obser,e+ by )s ,is-a-,is complainan*s2 s)bmi**e+ iss)e in *heir +ra8* +ecision o8 whe*her or no* *here ha+ been )n+erpaymen*s as claime+ by appellan*s )n+er *he pro,isions o8 P D AA2 3 ;3 - /he ma**er o8 or+erin- *he ;L%C *o compel *he P3$A *o se* )p s*an+ar+ employmen* con*rac* an+ -)i+in- ra*es 8or oilriworkers is beyon+ *he <)ris+ic*ion o8 *his Co)r* A ;3 - /he P3$A an+ *he ;L%C ha,e 8o)n+ *ha* pri,a*e respon+en*s ins)re+ pe*i*ioners wi*h #l)e Cross !Asia-Paci8ic' Ins)rance, L*+ )n+er *wo policies which e,en pro,i+e 8or co,era-e s)perior *o *ha* man+a*e+ by *he r)les #e8ore *his Co)r*, howe,er, pe*i*ioners assail *hese ins)rance policies as *hey were alle-e+ly iss)e+ by a 8orei-n ins)rance company no* license+ *o +o b)siness in *he Philippines /he con*en*ion is raise+ 8or *he 8irs* *ime an+ canno* be consi+ere+ H ;3 - $,i+ence shows *ha* pe*i*ioners are lan+-base+ workers an+ hence, no* en*i*le+ *o bene8i*s apper*ainin- *o sea-base+ workers Pe*i*ioners ha,e no*hin- *o +o wi*h mannin- ,essels or wi*h sea na,i-a*ion /heir )se o8 a seaman2s book +oes no*

Labor Law 1
+e*rac* 8rom *he 8ac* *ha* *hey are *r)ly lan+-base+ employees Pe*i*ioners2 plea *ha* we s)spen+ :3:2 license 8or makin- *hem )se *wo !2' passpor*s is o88-line A-ain, *hey ne,er praye+ 8or *his relie8 be8ore *he P3$A an+ *he ;L%C /his Co)r* is *he improper ,en)e 8or *he bela*e+ plea 7 ;3 - /he claims 8or a**orney2s 8ees an+ +ama-es o8 *he pe*i*ioners ha,e no basis as pri,a*e respon+en*s +i+ no* ac* in ba+ 8ai*h or wi*h malice Disposition assaile+ +ecision o8 ;L%C a88irme+

A2010

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Disini

ISSUE 13; a mon*hly-pai+ employee, recei,in- a 8i(e+ mon*hly compensa*ion, is en*i*le+ *o an a++i*ional pay asi+e 8rom his )s)al holi+ay pay, whene,er a re-)lar holi+ay 8alls on a :)n+ay HELD ;3 - 1ellin-*on simply +e+)c*s H1 :)n+ays 8rom *he 37H +ays normally comprisin- a year an+ )se+ *he +i88erence, 31A, as basis 8or +e*erminin- *he mon*hly salary /he mon*hly salary *h)s 8i(e+ ac*)ally co,ers paymen* 8or 31A +ays o8 *he year, including regular and special holidays, as well as days when no wor# is done by reason of fortuitous cause, as above specified, or causes not attributable to the employees! - /he mon*hly salary in 1ellin-*on 8or all 37H +ays o8 a year /he respon+en*s2 *heory wo)l+ make each o8 *he years in =)es*ion, a year o8 376 +ays P)rs)an* *o *his *heory, no employer op*in- *o pay his employees by *he mon*h wo)l+ ha,e any +e8ini*e basis *o +e*ermine *he n)mber o8 +ays in a year 8or which compensa*ion sho)l+ be -i,en *o his work 8orce - /here is no pro,ision o8 law re=)irin- any employer *o make s)ch a+<)s*men*s in *he mon*hly salary ra*e se* by him *o *ake acco)n* o8 le-al holi+ays 8allin- on :)n+ays in a -i,en year, or, con*rary *o *he le-al pro,isions bearin- on *he poin*, o*herwise *o reckon a year a* more *han 37H +ays 1ha* *he law re=)ires o8 employers op*in- *o pay by *he mon*h is *o ass)re *ha* 9*he mon*hly minim)m wa-e shall no* be less *han *he s*a*)*ory minim)m wa-e m)l*iplie+ by 37H +ays +i,i+e+ by *wel,e,9 an+ *o pay *ha* salary 98or all +ays in *he mon*h whe*her worke+ or no*,9 an+ 9irrespec*i,e o8 *he n)mber o8 workin- +ays *herein 9 /ha* salary is +)e an+ payable re-ar+less o8 *he +eclara*ion o8 any special holi+ay in *he en*ire co)n*ry or a par*ic)lar place *herein, or any 8or*)i*o)s ca)se precl)+in- work on any par*ic)lar +ay or +ays !s)ch as *ranspor*a*ion s*rikes, rio*s, or *yphoons or o*her na*)ral calami*ies', or ca)se no* imp)*able *o *he worker /he le-al pro,isions -o,ernin- mon*hly compensa*ion are e,i+en*ly in*en+e+ precisely *o a,oi+ recomp)*a*ions an+ al*era*ions in salary on acco)n* o8 *he con*in-encies <)s* men*ione+, which, by *he way, are ro)*inely ma+e be*ween employer an+ employees when *he wa-es are pai+ on +aily basis Disposition /he or+ers complaine+ o8, namely> *ha* o8 *he respon+en* .n+ersecre*ary +a*e+ :ep*ember 22, 1993, an+ *ha* o8 *he %e-ional Direc*or +a*e+ 5)ly 30, 1992, are ;.LLIFI$D A;D :$/ A:ID$, an+ *he procee+in- a-ains* pe*i*ioner DI:"I::$D

SUNDAY
WELLINGTON INVESTMENT V TRA$ANO 245 SCRA 561 NAR%ASA; 5 /y 0, 1995
NATURE :pecial Ci,il Ac*ion 8or Cer*iorari FACTS - A labor $n8orcemen* 388icer con+)c*e+ a ro)*ine inspec*ion o8 *he 1ellin-*on Flo)r "ills, owne+ an+ opera*e+ by 1ellin-*on In,es*men* an+ "an)8ac*)rin- Corpora*ion, an+ repor*e+ *he non-paymen* o8 re-)lar holi+ays 8allin- on a :)n+ay 8or mon*hly-pai+ employees A copy o8 *he repor* was e(plaine+ *o an+ recei,e+ by 1ellin-*onEs personnel mana-er - 1ellin-*on so)-h* reconsi+era*ion an+ ar-)e+ *ha* 9*he mon*hly salary o8 *he company2s mon*hly-salarie+ employees alrea+y incl)+es holi+ay pay 8or all re-)lar holi+ays an+ hence *here is no le-al basis 8or *he 8in+in- o8 alle-e+ non-paymen* o8 re-)lar holi+ays 8allin- on a :)n+ay 9 In a posi*ion paper s)bse=)en*ly s)bmi**e+ *o *he %e-ional Direc*or, i* asser*e+ *ha* i* pays i*s mon*hly-pai+ employees a 8i(e+ mon*hly compensa*ion 9)sin- *he 31A 8ac*or which )n+eniably co,ers an+ alrea+y incl)+es paymen* 8or all *he workin- +ays in a mon*h as well as all *he 10 )nworke+ re-)lar holi+ays wi*hin a year 9 - 5)ly 26, 1992> *he %e-ional Direc*or r)le+ *ha* 9when a re-)lar holi+ay 8alls on a :)n+ay, an e(*ra or a++i*ional workin- +ay is crea*e+ an+ *he employer has *he obli-a*ion *o pay *he employees 8or *he e(*ra +ay e(cep* *he las* :)n+ay o8 A)-)s* since *he paymen* 8or *he sai+ holi+ay is alrea+y incl)+e+ in *he 31A 8ac*or,9 an+ accor+in-ly +irec*e+ 1ellin-*on *o pay i*s employees compensa*ion correspon+in- A e(*ra workin- +ays - :ep*ember 22> *he .n+ersecre*ary a88irme+ *he challen-e+ or+er, hol+in- *ha* 9*he +i,isor bein- )se+ by 1ellin-*on +oes no* reliably re8lec* *he ac*)al workin- +ays in a year,9 an+ conse=)en*ly comman+e+ 1ellin-*on *o pay i*s employees *he 9si( a++i*ional workin- +ays res)l*in- 8rom re-)lar holi+ays 8allin- on :)n+ays in 1966, 1969 an+ 1990 9 Ge sai+ *ha* whene,er a re-)lar holi+ay coinci+es wi*h a :)n+ay, an a++i*ional workin- +ay is crea*e+ an+ le8* )npai+ In o*her wor+s, while *he sai+ +i,isor may be )*ili4e+ as proo8 e,i+encin- paymen* o8 302 workin- +ays, 2 special +ays an+ *he *en re-)lar holi+ays in a calen+ar year, *he same +oes no* co,er or incl)+e paymen* o8 a++i*ional workin- +ays crea*e+ as a res)l* o8 some re-)lar holi+ays 8allin- on :)n+ays

PROOF OF PAYMENT
BUILDING CARE CORP V NLRC (RODIL) 268 SCRA 666 PANGANIBAN; &'() a)y 26, 199$
NATURE Pe*i*ion 8or cer*iorari )n+er r)le H7 o8 *he %3C FACTS - Pri,a*e respon+en*, %o+il, a <ani*or )n+er #)il+in- Care Corp !#CC' an+ workin- a* Far $as* #ank an+ /r)s* Co !F$#/C' alle-e+ *ha* his wa-es, 13*h mon*h pay an+ ser,ice incen*i,e lea,e pay were )npai+@ *ha* he was no* pai+ 8or work ren+ere+ +)rin- le-al holi+ays@ *ha* on Feb 11, 1966 he was s)spen+e+ 8or a week wi*ho)* <)s* ca)se or *he re=)iremen*s o8 +)e process - #CC on *he o*her han+, alle-e+ *ha* %o+il ha+ been -i,en his wa-es an+ holi+ay pay an+ *ha* i* was willin- *o pay his salary +i88eren*ials 8rom Dec *o Feb F$#/C once complaine+ *ha* %o+il ha+ improperly cleane+ his area an+ *wice 8aile+ *o repor* *o *he ni-h* shi8* s)per,isor when ins*r)c*e+ *o +o so Also, *he s)spension on Feb 11 was erroneo)sly no*e+ in *he lo-book b)* pri,a*e respon+en* was allowe+ *o work *he ne(* +ay as shown

Labor Law 1
by *he *ime recor+s Ge came *o work only a mon*h la*er an+, when promp*e+ *o e(plain his lon- absence, sai+ he ha+ been s)spen+e+ by his s)per,isor 8or no reason an+ was a+,ise+ *o repor* on April A *o awai* *he in,es*i-a*ion on *he alle-e+ s)spension F$#/C la*er in+ica*e+ i* wo)l+ no lon-er accep* %o+il an+ he was a+,ise+ *ha* he was *o be *emporarily assi-ne+ as relie,er a* #CC while no o*her pos*s were a,ailable 1hen a+,ise+ *o repor* *o #CC, he ne,er appeare+ b)* ins*ea+ 8ile+ *he ins*an* case - %o+il main*aine+ *ha* he ha+ been absen* 8or *ha* lon- perio+ beca)se he ha+ been sick, *hen la*er ha+ *o care 8or his wi8e who also -o* sick, an+ was a-ain absen* 8or *he las* week beca)se he was ille-ally s)spen+e+ - %o+il 8ile+ wi*h *he ;L%C a complain* 8or ille-al +ismissal, )n+erpaymen* an+ non-paymen* o8 le-al holi+ay pay a-ains* pe*i*ioner A* *he ini*ial hearin-, %o+il was o88ere+ reins*a*emen* b)* he insis*e+ on paymen* o8 backwa-es@ pe*i*ioner +i+ no* a-ree, so bo*h par*ies s)bmi**e+ *heir respec*i,e posi*ion papers /he Labor Arbi*er iss)e+ a +ecision in 8a,or o8 pri,a*e respon+en*, hence *his pe*i*ion 8or cer*iorari ISSUE 13; ;L%C erre+ in awar+in- %o+il holi+ay pay an+ salary +i88eren*ials HELD &$: - I8 #CC ha+ really pai+ %o+il his holi+ay pay, i* co)l+ easily ha,e presen*e+ i*s payrolls, which cons*i*)*e *he bes* proo8 o8 paymen* /o pro,e paymen* o8 salary +i88eren*ials, i* co)l+ ha,e presen*e+ proo8s o8 s)ch mone*ary bene8i*sQb)* i* +i+ no* I* 8aile+ *o comply wi*h *he man+a*e o8 *he law@ as ;L%C r)le+, *he b)r+en o8 proo8 in *his re-ar+ lies wi*h *he employer, no* *he employee Disposition Pe*i*ion is DI:"I::$D an+ *he assaile+ Decision is AFFI%"$D

A2010

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Disini

*o 7>00 or I>00 p m "on *o :a*, an+ +)rin- peak perio+s e,en on :)n+ays an+ holi+ays - /he :an+i-an n- "an--a-awan- Pilipino 8ile+ a complain* 8or )n+erpaymen* o8 *he basic wa-e@ )n+erpaymen* o8 li,inallowance@ non-paymen* o8 o,er*ime work@ non-paymen* o8 holi+ay pay@ non-paymen* o8 ser,ice incen*i,e pay@ 13*h mon*h pay@ an+ bene8i*s pro,i+e+ 8or )n+er 1a-e 3r+ers ;os 1, 2, 3, A an+ H - D)rin- *he pen+ency o8 case, pri,a*e respon+en* Pelobello le8* a packa-e w? a salesman o8 *he Gaber+ashery, w?c con*aine+ a baron- *a-alo- 1hen con8ron*e+, Pelobello sai+ *ha* i* was respon+en* Oapa*aEs Oapa*a alle-e+ly a+mi**e+ *ha* he copie+ *he +esi-n o8 Gaber+ashery A memoran+)m was iss)e+ *o each o8 *hem *o e(plain why no ac*ion sho)l+ be *aken a-ains* *hem 8or accep*in- a <ob or+er which is pre<)+icial an+ in +irec* compe*i*ion wi*h *he b)siness o8 *he company #o*h respon+en*s +i+ no* s)bmi* *heir e(plana*ion an+ +i+ no* repor* 8or work /hey were +ismisse+ by pe*i*ioner /hey co)n*ere+ by 8ilin- a complain* 8or ille-al +ismissal - Labor Arbi*er 8o)n+ Gaber+ashery -)il*y o8 ille-al +ismissal an+ or+ere+ *hem *o reins*a*e Pelobello an+ Oapa*a /he char-e o8 )n8air labor prac*ice an+ claims 8or )n+erpaymen* re ,iola*ion o8 *he minim)m wa-e law were +ismisse+ 8or lack o8 meri* An+ 8o)n+ Gaber+ashery *o ha,e ,iola*e+ *he +ecrees on *he cos* o8 li,in- allowance, ser,ice incen*i,e lea,e pay an+ *he 13*h "on*h Pay ;L%C a88irme+ +ecision ISSUES .. 13; an employee-employer rela*ionship e(is*e+ be*ween Gaber+ashery an+ respon+en* workers 2 13; *he respon+en* workers were en*i*le+ *o *heir mone*ary claims !C3LA, ser,ice incen*i,e, 13*h mon*h pay, e*c' 5. 13; Pelobello an+ Oapa*a were ille-ally +ismisse+ HELD .. &$: Ratio /he 8ac*s a* bar in+)bi*ably re,eal *ha* *he mos* impor*an* re=)isi*e o8 con*rol is presen* 1hen a c)s*omer en*ers in*o a con*rac* wi*h *he haber+ashery or i*s proprie*or, *he la**er +irec*s an employee who may be a *ailor, pa**ern maker, sewer or 9plan*sa+ora9 *o *ake *he c)s*omer2s meas)remen*s, an+ *o saw *he pan*s, coa* or shir* as speci8ie+ by *he c)s*omer :)per,ision is ac*i,ely mani8es*e+ in all *hese aspec*s -- *he manner an+ =)ali*y o8 c)**in-, sewin- an+ ironin- /he *es* o8 employee-employer rela*ionship is 8o)r-8ol+> !1' *he selec*ion an+ en-a-emen* o8 *he employee@ !2' *he paymen* o8 wa-es@ !3' *he power o8 +ismissal@ an+ !A' *he power *o con*rol *he employee2s con+)c* I* is *he so-calle+ 9con*rol *es*9 *ha* is *he mos* impor*an* elemen* /his means *he +e*ermina*ion o8 whe*her *he employer con*rols or has reser,e+ *he ri-h* *o con*rol *he employee no* only as *o *he res)l* o8 *he work b)* also as *o *he means an+ me*ho+ by which *he same is *o be accomplishe+ 1 I* is e,i+en* *ha* pe*i*ioner has reser,e+ *he ri-h* *o con*rol i*s employees no* only as *o *he res)l* b)* also *he means an+ me*ho+s by which *he same are *o be accomplishe+ /ha* pri,a*e respon+en*s are re-)lar employees is 8)r*her pro,en by *he 8ac* *ha* *hey ha,e *o repor* 8or work re-)larly 8rom 9>30 a m *o 7>00 or I>00 p m an+ are pai+ an a++i*ional allowance o8 P3 00 +aily i8 *hey repor* 8or work be8ore 9>30 a m - Pri,a*e respon+en*s +i+ no* e(ercise in+epen+ence in *heir own me*ho+s, b)* on *he con*rary were s)b<ec* *o *he con*rol o8 pe*i*ioners 8rom *he be-innin- o8 *heir *asks *o *heir comple*ion .nlike in+epen+en* con*rac*ors who -enerally rely on *heir own reso)rces, *he e=)ipmen*, *ools, accessories, an+ paraphernalia )se+ by pri,a*e respon+en*s are s)pplie+ an+ owne+ by pe*i*ioners Pri,a*e respon+en*s are *o*ally +epen+en* on pe*i*ioners in all *hese aspec*s 2 "inim)m 1a-e- &$:F C3LA T &$: 1 As a conse=)ence o8 *heir s*a*)s as re-)lar employees o8 *he pe*i*ioners, *hey can claim cos* o8 li,in- allowance /his is apparen* 8rom *he pro,ision +e8inin- *he employees en*i*le+ *o sai+ allowance, *h)s> 9 All workers in *he pri,a*e sec*or,

SECTION 8 CONDITIONS OF EMPLOYMENT = LEAVES

A :$%KIC$ I;C$;/IK$ L$AK$

-.0. CO>ERA2E
MAKATI HABERDASHERY INC V NLRC (SANDIGANTUCP AND MEMBERS GRACIANO, ET AL) 1$9 SCRA 449 &ERNAN; N89'3('), 15 1989
FACTS - Pri,a*e respon+en*s ha,e been workin- 8or pe*i*ioner "aka*i Gaber+ashery, Inc !Gaber+ashery' as *ailors, seams*ress, sewers, bas*ers an+ 9plan*sa+oras9 /hey were pai+ on a piecera*e basis !e(cep* *wo who are pai+ on a mon*hly basis' In a++i*ion *o *heir piece-ra*e, *hey were -i,en a +aily allowance o8 P3 00 pesos pro,i+e+ *hey repor* 8or work be8ore 9>30 a m e,ery+ay /hey were re=)ire+ *o work 8rom or be8ore 9>30 a m

Labor Law 1
re-ar+less o8 *heir posi*ion, +esi-na*ion or s*a*)s, an+ irrespec*i,e o8 *he me*ho+ by which *heir wa-es are pai+ 9 13*h "on*h Pay T &$: 1 :ec*ion 3!e' o8 *he %)les an+ %e-)la*ions Implemen*in- P D ;o 6H1 pro,i+es> 9 /he Decree shall apply *o all employers e(cep* *o> ((( ((( ((( !e' $mployers o8 *hose who are pai+ on p)rely commission, bo)n+ary, or *ask basis, an+ *hose who are pai+ a 8i(e+ amo)n* 8or per8ormin- a speci8ic work, irrespec*i,e o8 *he *ime cons)me+ in *he per8ormance *hereo8, eH+ept where *he workers are pai+ on piece-ra*e basis in which case *he employer shall be co,ere+ by *his iss)ance inso8ar as s)ch workers are concerne+ 9 :$%KIC$ I;C$;/IK$ L$AK$ PA& T ;3 - 1hile pri,a*e respon+en*s are en*i*le+ *o "inim)m 1a-e, C3LA an+ 13*h "on*h Pay, )e, a#e %! e% i led ! (e#$i&e i%&e% i$e lea$e "a, 0e&a'(e a( "ie&e1#a e 8!#=e#( 0ei%: "aid a a fiHed a+!'% f!# "e#f!#+i%: 8!#= i##e("e& i$e !f i+e &!%('+ed i% )e "e#f!#+a%&e )e#e!f< )e, fall '%de# !%e !f )e eH&e" i!%( ( a ed i% Se& i!% .BdD< R'le >< I+"le+e% i%: Re:'la i!%(< /!!= III< La0!# C!de !pls see pro,ision' Goli+ay Pay- ;3 - Pri,a*e respon+en*s canno* also claim holi+ay pay )n+er :ec*ion 1!e', %)le IK, Implemen*in- %e-)la*ions, #ook III, Labor Co+e 3 ;3 - Gaber+ashery ha+ ,ali+ -ro)n+s *o *ermina*e *he ser,ices o8 pri,a*e respon+en*s - I* +oes show *ha* a ,iola*ion o8 *he employer2s r)les has been commi**e+ an+ *he e,i+ence o8 s)ch *rans-ression, *he copie+ baron- *a-alo-, was in *he possession o8 Pelobello who poin*e+ *o Oapa*a as *he owner 1hen re=)ire+ by *heir employer *o e(plain in a memoran+)m iss)e+ *o each o8 *hem, *hey no* only 8aile+ *o +o so b)* ins*ea+ wen* on A13L, wai*e+ 8or *he perio+ *o e(plain *o e(pire an+ 8or pe*i*ioner *o +ismiss *hem Ass)min- *ha* s)ch ac*s +o no* cons*i*)*e aban+onmen* o8 *heir <obs as insis*e+ by pri,a*e respon+en*s, *heir bla*an* +isre-ar+ o8 *heir employer2s memoran+)m is )n+o)b*e+ly an open +e8iance *o *he law8)l or+ers o8 *he la**er, a <)s*i8iable -ro)n+ 8or *ermina*ion o8 employmen* by *he employer e(pressly pro,i+e+ 8or in Ar*icle 263!a' o8 *he Labor Co+e as well as a clear in+ica*ion o8 -)il* 8or *he commission o8 ac*s inimical *o *he in*eres*s o8 *he employer, ano*her <)s*i8iable -ro)n+ 8or +ismissal )n+er *he same Ar*icle o8 *he Labor Co+e, para-raph !c' 1ell es*ablishe+ in o)r <)rispr)+ence is *he ri-h* o8 an employer *o +ismiss an employee whose con*in)ance in *he ser,ice is inimical *o *he employer2s in*eres* - 1e ha,e r)le+ *ha*> 9;o employer may ra*ionally be e(pec*e+ *o con*in)e in employmen* a person whose lack o8 morals, respec* an+ loyal*y *o his employer, re-ar+ 8or his employer2s r)les, an+ apprecia*ion o8 *he +i-ni*y an+ responsibili*y o8 his o88ice, has so plainly an+ comple*ely been bare+ 9/ha* *here sho)l+ be concern, sympa*hy, an+ solici*)+e 8or *he ri-h*s an+ wel8are o8 *he workin- class, is mee* an+ proper /ha* in con*ro,ersies be*ween a laborer an+ his mas*er, +o)b*s reasonably arisin- 8rom *he e,i+ence, or in *he in*erpre*a*ion o8 a-reemen*s an+ wri*in-s sho)l+ be resol,e+ in *he 8ormer2s 8a,or, is no* an )nreasonable or )n8air r)le #)* *ha* +isre-ar+ o8 *he employer2s own ri-h*s an+ in*eres*s can be <)s*i8ie+ by *ha* concern an+ solici*)+e is )n<)s* an+ )naccep*able 9 !:*an8or+ "icrosys*ems, Inc , ;L%C, 1HI :C%A A1A-A1H M1966N' - /he law is pro*ec*in- *he ri-h*s o8 *he laborer a)*hori4es nei*her oppression nor sel8-+es*r)c*ion o8 *he employer "ore impor*an*ly, while *he Cons*i*)*ion is commi**e+ *o *he policy o8 social <)s*ice an+ *he pro*ec*ion o8 *he workin- class, i* sho)l+ no* be s)ppose+ *ha* e,ery labor +isp)*e will a)*oma*ically be +eci+e+ in 8a,or o8 labor - /he ri-h* *o +ismiss or o*herwise impose +isciplinary sanc*ions )pon an employee 8or <)s* an+ ,ali+ ca)se, per*ains in *he 8irs* place *o *he employer, as well as *he a)*hori*y *o +e*ermine *he

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AND AND

e(is*ence o8 sai+ ca)se in accor+ance wi*h *he norms o8 +)e process

-.06 ENTITLEMENT AR/ITRATION -.05 COMPUATION LIA/ILITY

SENTINEL SECURITY AGENCY INC V NLRC (CABANO) 295 SCRA 120 PANGANIBAN; S'-#'3(') 0, 1998
FACTS - /he complainan*s were employees o8 :en*inel :ec)ri*y A-ency, Inc /hey were assi-ne+ *o ren+er -)ar+ +)*y a* *he premises o8 MPhilippine American Li8e Ins)rance CompanyN a* 5ones A,en)e, Ceb) Ci*y 3n December 17, 1993 Philippine American Li8e Ins)rance Company M[*he Clien*,E N, sen* no*ice *o all concerne+ *ha* *he MA-encyN was a-ain awar+e+ *he con*rac* o8 sec)ri*y ser,ices *o-e*her wi*h a re=)es* *o replace all *he sec)ri*y -)ar+s in *he companyEs o88ices a* *he ci*ies o8 Ceb), #acolo+, Ca-ayan +e 3ro, Dipolo- an+ Ila-an In compliance *herewi*h, M*he A-encyN iss)e+ a %elie8 an+ /rans8er 3r+er replacin- *he complainan*s as -)ar+s Mo8 *he Clien*N an+ 8or *hen *o be re-assi-ne+ *o o*her clien*s As or+ere+, *he complainan*s repor*e+ b)* were ne,er -i,en new assi-nmen*s b)* ins*ea+ *hey were *ol+ *ha* [*hey were replace+ beca)se *hey are alrea+y ol+ E Precisely, *he complainan*s los* no *ime b)* 8ile+ *he s)b<ec* ille-al +ismissal cases an+ praye+ 8or paymen* o8 separa*ion pay an+ o*her labor s*an+ar+ bene8i*s - De?en%ant>s Co((ent 9M/he Clien* an+ *he A-encyN main*aine+ *here was no +ismissal on *he par* o8 *he complainan*s, cons*r)c*i,e or o*herwise, as *hey were pro*ec*e+ by *he con*rac* o8 sec)ri*y ser,ices which allows *he recall o8 sec)ri*y -)ar+s 8rom *heir assi-ne+ pos*s a* *he will o8 ei*her par*y I* also a+,ance+ *ha* *he complainan*s prema*)rely 8ile+ *he s)b<ec* cases wi*ho)* -i,in- *he MA-encyN a chance *o -i,e *hem some assi-nmen*s - B3n *he par* o8 M*he Clien*N, i* a,erre+ 8)r*her *ha* *here MwasN no employer-employee rela*ionship be*ween i* an+ *he complainan*s as *he la**er were merely assi-ne+ *o i*s Ceb) #ranch )n+er a <ob con*rac*@ *ha* M*he A-encyN haM+N i*s own separa*e corpora*e personali*y apar* 8rom *ha* o8 M*he Clien*N #esi+es, i* poin*e+ o)* *ha* *he 8)nc*ions o8 *he complainan*s in pro,i+in- sec)ri*y ser,ices *o M*he Clien*EsN proper*y MwereN no* necessary an+ +esirable *o *he )s)al b)siness or *ra+e o8 M*he Clien*N, as i* co)l+ s*ill opera*e an+ en-a-e in i*s li8e ins)rance b)siness wi*ho)* *he sec)ri*y -)ar+s In 8ine, M*he Clien*N main*ains *ha* *he complainan*s ha,e no ca)se o8 ac*ion a-ains* i* 9 ISSUES .. 13; *he complainan*s were ille-ally +ismisse+ 2 13; *he Clien* is <oin*ly an+ se,erally liable 8or *heir *hir*een*h-mon*h an+ ser,ice incen*i,e lea,e pays HELD 1 &$: Ratio /he *rans8er o8 an employee in,ol,es a la*eral mo,emen* wi*hin *he b)siness or opera*ion o8 *he employer, wi*ho)* +emo*ion in rank, +imin)*ion o8 bene8i*s or, worse, s)spension o8 employmen* e,en i8 *emporary /he recall an+ *rans8er o8 sec)ri*y -)ar+s re=)ire reassi-nmen* *o ano*her pos* an+ are no* e=)i,alen* *o *heir placemen* on 98loa*in- s*a*)s 9 388+e*ailin- sec)ri*y -)ar+s 8or a reasonable perio+ o8 si( mon*hs

Labor Law 1
is <)s*i8ie+ only in bona 8i+e cases o8 s)spension o8 opera*ion, b)siness or )n+er*akinReasoning a /he le-ally reco-ni4e+ concep* o8 *rans8er was no* implemen*e+ /he a-ency hire+ new sec)ri*y -)ar+s *o replace *he complainan*s, res)l*in- in a lack o8 pos*s *o which *he complainan*s co)l+ ha,e been reassi-ne+ /h)s, i* re8)se+ *o reassi-n Complainan* An+oy when he repor*e+ 8or +)*y on Febr)ary 2, A an+ I, 199A@ an+ merely *ol+ *he o*her complainan*s on ,ario)s +a*es 8rom 5an)ary 2H *o 2I, 199A *ha* *hey were alrea+y *oo ol+ *o be pos*e+ anywhere b A 8loa*in- s*a*)s re=)ires *he +ire e(i-ency o8 *he employerEs bona 8i+e s)spension o8 opera*ion, b)siness or )n+er*akin- In sec)ri*y ser,ices, *his happens when *he clien*s *ha* +o no* renew *heir con*rac*s wi*h a sec)ri*y a-ency are more *han *hose *ha* +o an+ *he new ones *ha* *he a-ency -e*s Gowe,er, in *he case a* bar, *he A-ency was awar+e+ a new con*rac* by *he Clien* /here was no s)rpl)s o8 sec)ri*y -)ar+s o,er a,ailable assi-nmen*s I8 *here were, i* was beca)se *he A-ency hire+ new sec)ri*y -)ar+s /h)s, *here was no s)spension o8 opera*ion, b)siness or )n+er*akin-, bona 8i+e or no*, *ha* wo)l+ ha,e <)s*i8ie+ placin- *he complainan*s o88-+e*ail an+ makin*hem wai* 8or a perio+ o8 si( mon*hs I8 in+ee+ *hey were merely *rans8erre+, *here wo)l+ ha,e been no nee+ *o make *hem wai* 8or si( mon*hs !2' /he Clien* +i+ no*, as i* co)l+ no*, ille-ally +ismiss *he complainan*s /h)s, i* sho)l+ no* be hel+ liable 8or separa*ion pay an+ back wa-es #)* e,en i8 *he Clien* is no* responsible 8or *he ille-al +ismissal o8 *he complainan*s, i* is <oin*ly an+ se,erally liable wi*h *he A-ency 8or *he complainan*sE ser,ice incen*i,e lea,e pay Disposition /he pe*i*ion is DI:"I::$D an+ *he assaile+ Decision an+ %esol)*ion are hereby AFFI%"$D, b)* *he awar+ o8 *he *hir*een*h-mon*h pay is D$L$/$D

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AUTO BUS TRANSPORT SYSTEMS INC V BAUTISTA [PAGE 120]